What is the role of government in a mixed economy?

Answer 1

To protect the public and to preserve private enterprise.

AnswerTo be a little more specific, a Mixed Market Economy is one founded on Free Market principles, but which uses government regulation and monitoring to control certain "excesses" that True Free Market (TFM) system tends to express. That is, in a MME, the government is there to inject a sense of "societal good" concerning all market transactions.

The idea is that while a TFM provides optimal economicefficiency, it makes no accommodations as to what effect that optimal economic efficiency has on the society as a whole, not just the entities engaged in the marketplace. That is, what is economically most efficient may not be socially most efficient. Government regulation (i.e restriction on allowable economic activity) is the MME's solution to this problem, where laws restrict certain behavior which has been deemed "bad" or "detrimental" to the society in questions.

So, in a MME, the government's primary functions are fourfold:

1. Provide a stable currency for the TFM principles to be negotiated in
2. Provide a dependable, independent, consistent legal/judicial system for the proper resolution of disputes arising from economic activity (in TFM terms, something to enforce contracts and resolve contract disputes)
3. Produce a legal framework where a society can define what economic activity it considers acceptable behavior.
4. Provide a legal enforcement mechanism to both detect violations of #3, and to deter/punish/reform entities from such violations (generally, using #2).

Various other powers may be ascribed to the government in a MME (such as social welfare programs, protection of the populace, etc.), but, strictly speaking, they are outside the economicscope being discussed here, and are more properly considered part of a political system. Naturally, this boundary is fuzzy, for even if such programs are more properly part of a political system, they certainly have significant economic impact. E.g. if a political system chooses to have a public Universal Healthcare program, this directly impacts how medical services can be offered (and how they are funded) in the country's economy.

Answer

1. eradicate poverty
2. generate employment
3. build good infrastructure
4. enable education to all
5. provide medical facility

AnswerThere are three roles of a government in a mixed economy.

1. Protection
2. Regulation
3. Public Benefits

AnswerTo control market forces and to make sure that public goods are being produced. To help control and regulate the means of production.