How does a mixed economy maintain balance between private and public interests?

A mixed economy strikes a balance between private and public interests by integrating elements of both free market systems and government regulation. This approach allows for the efficiency and innovation that often arise in a free market while ensuring that public welfare is addressed through government intervention.

In a mixed economy, the government plays an essential role in regulating certain industries, providing public goods, and ensuring that economic disparities are mitigated. This can include implementing policies to protect consumers, workers, and the environment, as well as providing public services like education and healthcare.

By allowing both private ownership and public regulation, a mixed economy aims to harness the benefits of capitalism—such as competition and consumer choice—while avoiding some of the pitfalls associated with unregulated markets, such as monopolies and inequalities. This creates a balanced system where both individuals and the society as a whole can thrive.