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A MIXED ECONOMY Pg 98

A MIXED ECONOMY Pg 98. 1. S.A. HAS A MARKET ORIENTED MIXED ECONOMY. 2. Most economies are a mixed economy i.e. government [command] and market mechanism play a major part. Tradition plays a secondary [small] role. 3.N.B. Another name for the largely command system is Communism.

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A MIXED ECONOMY Pg 98

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  1. A MIXED ECONOMY Pg 98 • 1. S.A. HAS A MARKET ORIENTED MIXED ECONOMY. • 2. Most economies are a mixed economy i.e. government [command] and market mechanism play a major part. Tradition plays a secondary [small] role. • 3.N.B. Another name for the largely command system is Communism. • The S.African system- largely market oriented is called Capitalistic system.

  2. GOVERNMENT INTERVENTION • Nationalization is where the government owns most of the assets.{Public sector} • Privatization is where the people own most of the assets.{ Private sector} • Some services cannot be provided by private people e.g. defence, Law and order; education for the majority of the people.

  3. Government intervention • “what the government gives it must first take away.” Coleman To provide goods e.g. houses and services the govt. collects tax. [ V.A.T; P.A.Y.E; SITE tax; Customs and excise duty etc] There is a big debate about how much government intervention is correct.

  4. PLACE OF GOVERNMENT IN A MIXED ECONOMY

  5. THE FINANCIAL SECTOR • This refers to the banks • Commercial banks e.g.Standard, FNB, Nedbank, Ithala etc. • The S.A. Reserve Bank- regulates money supply- lends money to the commercial bank at the repo rate. • Commercial banks then lend the same money to you and entrepreneurs at a higher rate.

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