Why is Canada a mixed Economy?
Mixed economy constitutes controlling the economy of the country by using both private and government policies. Mixed economy includes taking care of the industries and activities by the government which involves environmental care, social welfare, ownerships enjoyed by the state, administration of commodity production for social or national interests, and so on. Mixed economy can be perceived as an understanding between socialism and capitalism by the social democrats.
Country with mixed economy will function realistically and efficiently. An effective economy will fulfill the demands of the people and will solve most of the economic hurdles of the nation. Canada is also considered to be possessing mixed economy.
The concept of Socialism encourages the government planning towards improving the economy. The road of economy here is directed by the government than the individuals and private groups. Socialist policies show that inequality of wealth and influence of power should be abolished and not strictly followed. Socialist society encourages government to possess the ownership on transport, airline, telephone services, education, health care, and public housing. Government manages all these sectors carefully through its own legal regulations. So there will not be large difference between haves and have-nots.
Canada is classified under mixed economy as socialism was observed to be influencing its economy. The Canadian government actually manages the transportation, agriculture and fisheries. Some government organizations manage petrochemicals, Canadian Railways and Canadian broadcasting corporation which contributes significant income to Canadian economy. Forests are owned by government and the regional parks are planned by the government itself. Socialism is believed to reduce the gap between rich and poor by implementing importance to the seniors, medical insurance, and education to students until 16 years. These services are rendered due to the funds generated from taxes imposed on businesses, employed individuals, and so on. Public education and health care are major services rendered by Canada government to prove its involvement in mixed economy.
Canada also encourages enterprise free market and allows individuals also to follow capitalism. Canada gives importance to freedom for every individual. Canada encourages people who are specialized in some areas. Encouraging specialization will increase the efficiency of the industry and helps in trading successfully. Specialization also can increase production. Self sufficiency and effective use of resources are also followed in specialization led free trade. The combination of social interests and individual economic freedom has allowed Canadians to feel secured. This is the secret behind Canada’s mixed economy.