While a mixed economy combines free market with central government planning and intervention,
a market economy relies purely on the free market (and the rules of supply and demand) to regulate the economy.
For this reason, profit motives, incentives, and capitalism are the driving factors of the economy.
Whereas a Socialist Market economy – system is based on the predominance of public ownership and state-owned enterprises within a market economy.
The term “socialist market economy” was introduced by Jiang Zemin during the 14th National Congress of the Communist Party of China in 1992 to describe the goal of China’s economic reforms.
Socialist or Capitalist Market Economies need buyers as well as sellers, and it is the balance of these that makes a success of any system.
Under Socialism when the State is the only Buyer the system grinds to a halt because single Marketing Boards or Cooperatives cannot compete.
In a Capitalist market system where dog eats dog until one has a monopoly the same applies.
Supermarkets are one example – take overs reduce competition not increase it.
Common or Single markets cannot be common either because production is influenced by labour, climate and resources.
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