Mixed Economies Public and Private Sectors! Somewhere between the complete laissez-faire capitalism of the market economy and the strict central controls of the command economy lie the territories of the mixed economies. In practice, every economy in the world is some form of a mixed economy, but there are vast differences between them in terms of how much of each economic theory they support. Generally, however, mixed economies will have areas that are public (closest in principle to the command economy) and areas that are private (most similar to a market economy).(posted 7081 days ago)Private Sector These are areas of a nation's economy that are left to the self- regulating devices of the market economy. If the government is involved in this sector at all, it is only to function as a referee (to ensure fair competition between all competitors). In Canada, many areas of the economy are within the private sector. A quick trip to the mall will expose us to competition, profit motive, entrepreneurs, privately owned land, labor and capital, and the laws of supply and demand.
Public Sector These are areas of a nation's economy deemed too important or not profitable enough to be left to the private sector. Governments in mixed economies will get involved in the production of some goods or services in order to guarantee essential services to all citizens or to try and encourage private interest in the economy. In Canada, services like public transportation and postal service are examples of areas deemed too important to all citizens to leave to the instabilities of the marketplace. Recently, in a wave of privatizations (selling public sector companies to private owners), services like telephone companies, liquor stores and registry services have been taken from the public sector and placed in the private sector.