3 situation for Mixed economy
Answers
Examples of mixed economies
Share of government spending as a % of GDP
Iceland (57%)
Sweden (52%)
France (52.8%)
United Kingdom (47.3%)
United States (38.9%)
Russia (34.1%)
India – (27%)
China – (20%)
Hong Kong (18.6%)
All the above economies are mixed. The government manages a section of the economy, and private firms and individuals operate the rest.
There are different degrees of state intervention. European economies such as Sweden and France have a generous level of social security spending; in western Europe, education and healthcare are free at the point of use. However, in the US, government spending as a share of GDP is lower, but health care has to be paid for.
As economies develop, the government often take a higher share of total spending. Developed countries, such as in Western Europe, often choose to provide state welfare support, and greater government regulation of business and the environment. Developing economies, such as Cameroon and Uganda have government sector which spends less than 20% of GDP.