III. Mixed Economy Combination of individual freedom (private) and government control (public)

III. Mixed Economy

Combination of individual freedom (private) and government control

(public).

*Majority of countries are this type…*

…but there is a wide variety!

1. Capitalism: more freedom– 85% market driven, 15%

government control.

Example: USA

2. Socialism: Democracy, but more government control of economy– “50% government control, 50% market driven.”

Examples: Canada, most of Europe (France, Britain, etc),

China

a. For business: more regulations, perhaps even government ownership (broadcasting, banking system, etc)b. For individuals, free medical care, child care, job training, etc.

b. High tax rate:22% total income go to taxes in Sweden, 9% in US.

3. The US wants as much freedom as possible, BUT…

…government is involved in MANY ways. This involvement began with Theodore Roosevelt’s presidency

from 1901-1908, a period known as the Progressive Era.

a) Regulatory agencies: FDA

b) Public goods and services such as traffic lights, parks.

c) Eminent domain

d) Zoning laws.

Public or Private?

• Most enterprises are either publicly owned (by the government) or privately owned (by individuals or stockholders). For each of the following, tell whether they are publicly or privately owned. They might be owned by the government but managed by a private company. If that’s the case, still put public.

1. McDonalds2. Tennessee Titans3. Baptist Hospital4. Frist Museum of Art5. Rivergate Mall6. Berry Field/Nashville Airport (BNA)7. AT & T8. Nashville Electric Service9. Vanderbilt University10. Tennessee State University11. Bridgestone Arena12. United Parcel Service (UPS)13. Regions Bank14. Nashville Sounds baseball team15. Kroger