The Purpose of Mixed Economies

We've talked about free market economies and command economies, but the truth of the matter is that nearly every country on Earth utilizes a mixed economy, which blends aspects of each of the aforementioned economy types. Whether talking about the United States, European nations, or almost any other country, economies utilize aspects of a free market but also some government control. What is the purpose of this approach? Why should a government get involved in an economy? Why is this model so successful? Let's find out!
Script by Matt Beat: / iammrbeat
Animation by Ignacio Triana: / unraveled
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[@jaredharmer7047]

Economist here - very good basic video, BUT it is worth mentioning that the “command” part of a command economy can take VERY different forms. A democratic command economy is very different from a fascist command economy

[@jaredharmer7047]

Also, a market of unionized and worker-owned shops (or corporations with worker representation like germany) operates differently than a market without those fundamental changes

[@doglol]

@@jaredharmer7047 this video is on mixed economies, the command economy video is a different video

[@jimboslice3646]

Sure, and those that take fascist forms are going to land farther right on the spectrum. And worker coops are going to be more left than a heavily planned economy. I think the fundemntal point to this lecture is the spectrum part. The nuance is of course endless when it comes to the various economic systems, history, etc x 10000.

[@jijoeee3352]

I have a report about mixed economy, tomorrow at school. I need clarification if This Video might help me To my report?

[@jimboslice3646]

This is pretty much the exact lecture my professor gave in my 1st economics class in college. Drew a line on the board and started asking where countries fell on the spectrum. Seems like common sense now, but 20 years later I find myself explaining the economic spectrum to people who say a lot of dumb stuff about "ohhh socialism" and "ohhhh capitalism"

[@LD-tn6ff]

lol - It was high school economics for me, which makes the sentiment even sadder.

[@velikiradojica]

To be honest, in the milk example, the farmer probably gets lots of subsidies from the state.

[@prestonjones1653]

Only if he's in an important voting block. Countries with very few farmers don't have farming subsidies.

[@kurtvonnegut9959]

Very good video for anyone to watch in my opinion. Everyone is mislead on how economic systems truly function, even in their one counties.

[@danielhumphrey3836]

Hey Dave, I know this doesn’t relate to this video but could you explain the origins of energy? How does the capacity to do work initiate?

[@iggi3985]

This was an interesting video! Really enjoyed it

[@xavierfranco8505]

very good clear video , thank you

[@popescugabriela-livia7072]

This is gonna be verry intresting fo watch

[@julianshepherd2038]

Poland is interesting with infrastructure backed by EU money while the private sector does pretty well. It did help that the population was generally skilled and healthy.

[@TheTukangDeadlift]

thank you for the video

[@zpacez9319]

Cant wait for the next vid

[@SeanLawlorNelson]

Prof. Dave, The points you make are excellent. Moreover, big business developments: new cities, industries, and marketplaces cannot be created nor fostered by individual investors and businesses. It's all too big. Without some element of business socialism, such big projects never happen: the development never happens, and thus both the rich and the poor are misserved. The rich don't get the investment turn and development results: the poor don't get the employment and other benefits of largescale development.

[@TheKingBeyondEverything]

Prof. Dave, will you also Debunk Sadhguru after getting done with ID?

[@ProfessorDaveExplains]

Yes I'll do that one at some point.

[@DonutsIceCreamAndCottenCandy]

@@ProfessorDaveExplains yesssss

[@TheKingBeyondEverything]

@@ProfessorDaveExplains I'll look forward to it.

[@chrissierra-5633]

@@ProfessorDaveExplains YYYYAAAAAASSSSS

[@bAYOTLIST.4299]

@@ProfessorDaveExplains Expose him. He knows too much than experts, Phd graduates and scientists.

[@noorsahar8766]

Can you please upload videos on genetic engineering.... You are Amazing BTW ☺️

[@nsg_kuunda4786]

This video just convinced / reinforced in me that anarchists and libertarians need to be better at coming up with and implementing ways to replace governments.

[@jeymon243]

Libertarianism isn't utilitarist. For libertarians (me included), freedom is the end and not the mean, because freedom its just the right thing.

[@arcioko2142]

Anarcho-communist here. We have very detailed systems to replace the government. It could be arranged this way: 1. Money is abolished 2. As a replacement for money incentive, a system of mutual aid (a.k.a. a gift economy) would be established. To explain how this would work, let's say you have a doctor, a farmer and a builder-architect: as pay for being a doctor, the doctor receives free food and a free house; as pay for being farmer, the farmer receives free healthcare and a free house and as pay for being a builder-architect, the builder-architect would receive free healthcare and free food. In larger scales this would be more complex (as I will explain) and there would be more incentives, but that is the gist. 3. All workplaces are (direct) democratized and rewards equalizes. As a result, people gain exactly what they get, with no boss taking majority of the profits, the experienced workers are the ones who make the decision instead of an unexperienced CEO and shareholders making all the decisions as a dictator (or including the shareholders, a one-party dictatorship). Now, lets explore the consequences of this system: 1. Crime basically goes extinct: nearly all gang violence, theft and murder are due to economic reason, and since money has been abolished and people get free welfare through the previously described mutual aid system there is no reason to commit these. There would also be free mental health institutions which would also help with psychopathic murders and hate crimes. 2. There is no reason to hoard things anymore: since money is abolished, there is no reason to hoard things except that of annoying people because why are you even doing it? To sell it? Money has been abolished and you will be banned from every store if you do that. 3. Since workplaces are now democratized, it is impossible for companies to be corrupt, as any one who is corrupt between the company will be shrugged off and their wishes will not be followed. And as a consequence there is no arbitrary rules that make no sense, pay reductions or whatever: if you work good, you good. Now, I am going to expand a little on the mutual aid thing with a common question: "Cool, you all guys get paid mutually, but what is preventing someone or many people at once from just not working and leeching off the community without contributing anything?" Before addressing how to deal with this, you really thing more than 50% of people are just going to stop working and do nothing for the rest of their life? But anyways, that is dealt with in a very simple way. Without working you get basic necessities: a fairly small and modest home, basic food, and healthcare - however, you will not get access to any luxury nor able to access any place where the free stuff is given. It is when you decide to work that you will be given the tools necessary to do the job, and then the community will set up a contract and will decide the incentives that you will be provided. Depending from the importance of your job, you may be able to receive the latest videogame or you may be able to fly first-class and live on a mansion. In this way, instead of voting for good products abstractly with the free market which allows for much corruption, you vote directly for what you want by giving the people who work either resources to complete a product or gifting them parts of your labour. Those who do worse, will be given less and those who do better, will be given more. "From each according to his ability, to each according to his need" - Karl Marx

[@chrissierra-5633]

My favorite flatearther destroyer and a dude who shows me the right path

[@duongthiminhthu250]

i love this video

[@davorbrijacak]

Dairy industry also receives quite a bit of government subsidy, it's not only about taxation.

[@nsg_kuunda4786]

End the dairy cartel

[@jjchello]

Hey Professor Dave. How do I get a legitimate business inquiry to you to fund or sponsor a video on a specific biochemical subject?

[@ProfessorDaveExplains]

email me! in description

[@jjchello]

@@ProfessorDaveExplains email sent. Thanks!

[@Greg501-]

Sales tax will vary based on location

[@bAYOTLIST.4299]

Let's go Prof D.

[@jansenart0]

41 Stars, Dave? Which nine states pissed you off??

[@bashachemistry1111]

Hi professor

[@nexus1g]

The US is a good example of the problems with mixed economies. Here, having a mixed economy creates legislative handles by which corporations gain power. Tyson foods, for instance, supports a food safety bill in Congress, the Food Safety Modernization Act (FSMA). This creates a new department within the federal government known as the Food Safety Administration (FSA). And like the FDA leadership being a "who's who" of pharmaceutical industry, they want to create a separate department that includes a "who's who" of industrial food. They use these departments as a cudgel to create a de facto monopoly for themselves, being able to absorb the additional operating and legal costs much more effectively than a smaller operation not dealing in the same volume.

[@marknieuweboer8099]

It's because the American political system is corrupt. Just compare campaign budgets.

[@nexus1g]

@@marknieuweboer8099 Exactly. Trust in power has historically never gone well.

[@1thommyberlin]

Ok, I've a skewed view because my entire adult years were spent in the United States where self identified 'conservatives' purposefully destroyed the economic system that built the largest economy on earth with the largest middle class, and replaced it with neofeudalism. (yes I made that term up). And where were the economists? Going right along with them. How many told the truth about 'Trickle Down' economic policies? How many in the entire country? So they blew that. What 'Trickle Down' was: A method of plundering the working classes to make the wealthy wealthier, more become politically powerful enough to never have a FDR again. They blew every economic melt down since too. And why? Because what economists are in reality: Toadies who work for the wealthiest Americans, and nothing more. and as an American, I'd make their profession illegal. As if the uber wealthy needed another group of professional liars.

[@arnoldfossman1701]

Dave, I'm not sure about all the states, but in all the states that I've bought milk in there is no sales tax on any food items with possible exceptions for candy and soda. I do have a question for you though. How can I get people that I end up debating with to actually find out the definitions of the words that they are bringing to the table. Words like capitalism, communism, socialism, fascism, democracy, and dictatorship. I know that the first three while being mainly economic are used in ways that they cross over into government type areas, but some people can't see that some countries called communist are functionally dictatorships for example. Anyway, maybe you can message me with some ideas.

[@MRSYSTEM96]

Its legal to sell raw milk in Ireland but there are the same hygiene requirements when producing the milk

[@julianshepherd2038]

A view of an entirely corporate country can be seen in Bengal under the East India Company. Don't look it up if you are going to eat soon.

[@erikblue7842]

Day got better by my country being mentioned

[@-JA-]

👏👍

[@ACE-dq6ng]

Five days till our group presentation 😅.....wish me luck

[@johnm.2346]

Ok

[@Claudius_Ptolemy]

Ok

[@paisleepunk]

Ok

[@programaths]

Also, the distribution of IQ plays a role. Not everyone can have every job and people end up not being employed because they are just inept. So, they live on the welfare system with assistance of social services. In Belgium, we have 4 levels. A being someone able to repeat a simple task after training, B someone able to do a complex repetitive task and take minor decisions (call for help, switching task), C someone able to use knowledge to achieve a predefined agreed objective, D someone able to create knowledge and defines his own objectives. A lot of Belgians don't even know about that, because even if their class is on their pay slip, if they are A or B, they are don't show the curiosity to understand the meaning. This explanation of classes was just to show that the employees are classed by the state and companies and it impact the salary. (Pay scale) I've worked close to A people and it gave funny moments where the instructions were not clear, so the job was a mess. Once there were A4 folders to be put into boxes, but that was the wrong box reference, so they folded the folders to fit ion the smaller box. Destroying quite a few before the supervisor saw it. While the supervisor yelled out of frustration, the blame went on her. (That's the perk of A level, not being responsible VS level D where you can be fired very easily.) Below level A are protected workshops. Those workshop are funded by the state (companies get compensated for employing challenged people). And the bar to be employed will only raise as both fluid and crystalized intelligence is more and more in demand. For instance, in my job, I need to solve problems AND learn people businesses. I have to communicate solutions in jargon used by the trade. (Analyst-Developer) So, there will always be a need of solidarity, even without public infrastructure and utilities. As for monopolies, free market deal really good with them. Monopolies have a weak spot: their scale. They can cater less to specific needs (niche), so, smaller businesses can chip it. The issue with monopolies arise when the state is involved. In Belgium, the TV operators pressed to disallow fiber on the facades. So, the state disallowed it, forcing FAI to dig the ground. Without intervention from the state, the TV operator monopoly would have been taken down. Same with taxies who asked to have a limited number of licences, so they can have control. (And recently, Uber did some big noise!) The state has to be the smallest possible and just ensure that contracts are honored, goods are safe to use/consume. But if someone want to sell bean for a thousand a piece and there are people willing to buy, the state should not intervene. Same with the example with TV operators, if they can run a 5mm cable on the facades, then FAI can run a 2mm one too. And for those thinking AI and robots are the solution, oh boy, we are lucky to only see the beginning of the transition ^^

[@programaths]

@@Iamrightyouarewrong Weird way to agree, but I take it. Thank you!

[@bccsivxx-xxivvii]

That four level system is very interesting. I like the simplicity of it.

[@programaths]

@@bccsivxx-xxivvii It makes it easier for companies. If they want someone to take decisions that can jeopardize the company's future, they have to have someone fitting the D level. So, when you move from one company to the other, regardless of your salary, they can see your level. (unless A or B) Now, it's not a cast system. If you do great in a company and they want to increase your salary, they will put you in the class above (because you also take more responsibility). For the state, though, the diploma plays an important role. And, confusingly, there is another classification of employees going from F to A...where A is the highest 😅 It's nice until you see that an employee is both D and A ^^ With my bachelor's degree, I am level B/A for the state. (level B, but can be considered for A positions) But in the private sector...D ^^ Ironically, in the private sector, it's about your real competencies and for the state, your diploma. So, the private sector is much fairer than the state. Oh, and also, if you have prior experience in the private sector, the state cut your work time history in 2. (how long you worked is taken into account for your pay in state employment) Now, there is a nice thing for the state, you can take tests and climb the ladder. So, if you are incompetent but good at memorizing stuff you can be promoted. Also, you have a kind of trial in front of some employees, but usually, it's nothing as it goes about whether they like you or not. So, things are not as simple.

[@urielpolak9949]

Regulation.wrongly vilified in the USA. How they hate regulation. Yet i am real happy for regulation

[@CC_CCMN]

Businesses and the government over there have a sort of Pope and Emperor relationship.

[@epicstyle1000]

lots of taxes 😥

[@sundaymorningmassradioshow8624]

lol xd

[@rizzo021]

Govt involvement always has a cost. So best to have the absolute minimum in their extremely incapable hands. Let people make there own decisions with their own money!

[@julianshepherd2038]

Or you could have a well run government like Scandanavia. Not everywhere is the us of a or wants to be.

[@chiepah2]

The government should be relegated to setting minimum standards then making sure they are enforced. Running stuff on the other hand should largely be out of their hands. Look at the DMV, public education, and even police forces. Now in some cases like police and military, the government is the least objectionable group to run them, I mean, would you rather they be in the hands of nestle? However, if AAA was allowed to issue driving tests and all they have is a government agent in an office ensuring there's no cheating how much better would the experience be?

[@chiepah2]

@Physically Remove Commies I get it, but like I said in my earlier comment, would you trust nestle with a standing army?

[@chiepah2]

@Physically Remove Commies the problem is that anarchy will develop into groups and gangs that will eventually become monarchies and dictatorships. We know this because that's how humans developed historically, at least in high resource areas.

[@ethelredhardrede1838]

@@chiepah2 Private driving testing, oh goody. Are you trying to prove just how dum radical Libertarianism is?

[@thureintun1687]

Free rules! Controlled sucks!

[@Kim-Yo-jong]

The communist understander has logged on.

[@qzh00k]

What about regulated, constrained, bounded or otherwise forms of managing how shit works. Corporations seem to enjoy selling libertarian childlessness to vulnerable folks, grooming some say. We lost what "controls" mean when the world is full of them.

[@qzh00k]

@@zigoter2185 ever study koch industries and their work buying politics for decades now. The libertarian bullshit is what they hide behind.

[@OpinionsNoOneCaresAbout]

Money is an illusion. Get rid of it.

[@nystagmushorizontalis]

So what would take it's place? Barter?

[@ProfessorDaveExplains]

That is meaningless and ill-advised.

[@blondezeke6640]

@@ProfessorDaveExplains am a socialist and even I know you don't exactly wanna get rid of money lol

[@bccsivxx-xxivvii]

Username checks out.

[@rdm3373]

Lol you can get in time machine and go back to bartering if you want. You can spend half your day trading eggs for milk

[@AltCtrlSpud]

i no feel bad for gorge flode

[@julianshepherd2038]

What flood?