Which Countries Have a Mixed Economic System?
Countries with a mixed economy include Iceland, Sweden, France, the United Kingdom, the United States, Russia and China. These countries have a mix of government spending and free-market systems based on the share of government spending as a percentage of gross domestic product. Some governments spend much more money in proportion to GDP, while others spend much less.
Iceland’s government spending is 57 percent of the country’s GDP. That means the other 43 percent is private industry. Sweden’s government spending is 52 percent of its GDP. The United Kingdom features 47.3 percent government funding, and the United States is 38.9 percent. Most countries feature mixed economies, which makes it easier to trade and do business on a global scale.
Government programs in mixed economies vary. Welfare, pensions, defense, Social Security and health care are some areas in which governments spend large sums to support their populations. In general, countries with more developed economies have greater government spending as a share of GDP.
Advantages of a mixed economy include more efficient private industries, reduced government regulation, better stabilization when free-market principles fail, greater equality to prevent absolute poverty, and government programs to promote stabilization. Disadvantages of a mixed economy are too much regulation that stifles free enterprise, too much government borrowing during crises, and inefficient allocation of resources.
