Most Efficient Economic System Research Paper

What is the most efficient economic system?

Barack Obama, the 52nd president of the United States expressed the statement "It 's time to fundamentally change the way that we do business in Washington. To help build a new foundation for the 21st century, we need to reform our government so that it is more efficient. That will demand new thinking and a new sense of responsibility." An economy is the wealth and resources of a country or region, especially in terms of the production and consumption of goods and service. Economy branches off into many economic systems. An economic system is the way of organizing the production and consumption of goods. Currently, there are four main economic systems. These systems consist of a traditional economic system, where the decisions about what to produce and how to produce them are based on customs, beliefs, and traditions. Command economy, where the decisions on what to produce and how to produce them are made by the central government. Market economy, where the decisions on what to produce and how to produce them mainly rely on markets. And mixed economy, a combination of market and command. I believe that from these systems, the most efficient form of economy is a mixed economy. A mixed economic
system is the most efficient form of an economic system because this system allows many more freedoms than command economies. Mixed economy offers freedoms such as the freedom to possess the means of production; to participate in managerial decisions; to buy, sell, fire, and hire as needed; and for employees to organize and protest peacefully. A mixed economy will keep means of productions efficient, and will also keep businesses running smoothly because of the ability to fire and hire as needed. Having more freedoms in mixed economies than other economies will be efficient because it keeps the citizens happy. Citizens that stay happy will produce less complaints to the government, and the government will be able to focus on more important, larger things. A mixed economic system is the most efficient form of economy because mixed economies have a high level of state participation and spending, leading to tax-funded libraries, schools, hospitals, roads and utilities. Having all of these resources will produce mixed economy to be the most efficient because money will never be an issue when trying to provide public resources. Some economies such as a free market, do not take revenue, and have to pay out of pocket to maintain these resources.This can be an issue because the money might not always be there. This would create an unefficient process. In conclusion, mixed economies are more efficient at maintaining public goods than other economic systems because public goods are payed for from taxes. A mixed economic system is the most efficient form of economy because with producers deciding what to make and sell, it creates competition among businesses.
Competition among businesses can be beneficial for an economy because it generates profit. For example, some people may wonder why when you drive in downtown New Hampton, there are three gas stations within a half of a mile. The reason for this is, each of these businesses want their store to generate more profit than the others, and are willing to work for it. The competition between businesses will be efficient because it generates profit. This profit generated can be used to provide more resources for the citizens, so the government does not have
too. All of these reasons stated are what give me the belief that a mixed economy is the most efficient form of economy. Not only does a mixed economy enable the citizens of its country to produce what they want, a mixed economy will raise profit intake, and lower citizen complaints. Overall, a mixed economy is the most beneficial and efficient form of government.

WORK CITED http://www.slideshare.net/Geckos/the-four-types-of-economic-systems-presentation http://www.princeton.edu/~achaney/tmve/wiki100k/docs/Mixed_economy.html https://www.boundless.com/business/economics-and-business/businesses-under-mixed-economic-systems/the-benefits-of-mixed-economies/ http://www.investopedia.com/terms/m/mixed-economic-system.asp