What are the disadvantages of the mixed economy?

The mixed economy is a mixture of government controlled and free market, and although some may consider this economy ideal, it has disadvantages. One of the disadvantages of mixed economy is that business owners have to pay taxes that they cannot control because the government controls tax collection and expenses. The government tends to allocate resources for social care rather than items that would strengthen the economy. This economy gives business owners a lot of freedom, but for some it may be a problem, because the owners of businesses must find their own market. The government also has a big hand in the economy, so there are a lot of paperwork and bureaucracy for business owners. This is one of the disadvantages of the mixed economy, because the government is involved in the economy. Also, business owners cannot determine where their tax money will be. Instead, the government takes a predetermined percentage of business owners' profits and uses money as it wants; This means that money could be used for social programs or wars.

The government has control over the allocation of resources in a mixed economy. In the free market economy, resources will be provided with services that best support the economy, but the mixed economy gives most resources to social security programs. Although some people consider it an advantage, it is a disadvantage for business owners because they do not have to get enough resources to create a corresponding product or profit.

Another disadvantage is the number of free owners of businesses must create a product. Although there are legal constraints of some types of products, most items can be made without such problems. This means that business owners have to find and create their own market, which can be difficult for some companies due to the free market for a mixed economy.

government agencies usually like to follow businesses, their earnings and many other aspects of their business practices. This means that business owners are possibleThey will have to deal with lots of paperwork and bureaucracy to get licenses or simply work legally. This is one of the disadvantages of the mixed economy that is the most difficult for private enterprises because they often experience the most paperwork.