Entry #2. The Economy Where We Live

Wendell Berry, an American novelist, poet, and environmental activist once claimed, " In a society in which nearly everybody is dominated by somebody else's mind or by a disembodied mind, it becomes increasingly difficult to learn the truth about the activities of governments and corporations, about the quality or value of products, or about the health's of one's own place and economy." That is to say it is essential for everyone to understand at least the basic operation of his/her nation's economy.

        

  Have you ever thought about the economy where we live in?

                            

                                  In the economy where we live in, both producers and the government's decisions decide which goods and services are produced and how they are allocated. That economy is called " Mixed Economy." Mixed economy offer more freedoms than any other economies, such as command economy. For instance, it gives companies the freedom to make their own decisions, buy, sale, fire, hire as much as the need when necessary. One such example can be found in the United States today. 

It also allows competitions between producers. In this case, two producers can make the same product and see which one gets more customers. However, when one loses enough customers, he can pair with the other producers or accepts that winner takes all.

And of course the government plays a huge role in our economy: to protect the public and to preserve private enterprise..