The Characteristics of a Mixed Economic System
There is a limitation of the private sector by the state in the fields which control the lives of the people controlled by the state.
The existence of government interference with a market mechanism through various economic policies
The mechanism of an economic activity there is the interference of the government with various economic policies.
There are recognized private property rights, as long as their use does not harm the public interest.
Goodness of mixed economic system
The existence of an economic sector controlled by the government that aims for the benefit of the community.
There are clearly recognized individual / private rights.
At a price easier to control.
Bad economic system mix
The role of government is heavier than the private sector.
The emergence of KKN (corruption, collusion, and nepotism) in the government because there are many production sectors that benefit the government while very little in its supervision
Economic system
The economic system is an economic system that is based on the ideology of Pancasila in which there is a meaning of economic democracy, an economic activity based on joint efforts with the principle of kinship and mutual cooperation from, by, and for the people in the guidance and supervision of the government.
Characteristics of the Economic System
The main features of the Pancasila economic system are contained in the Act
Article Case 33 After the 2002 Amendment
The economy is structured as a joint venture based on family principles.
The branches of production which are important for the state and control the lives of many people are controlled by the state.
The earth and water and the natural resources contained therein are controlled by the state and used for the greatest prosperity of the people
The national economy is carried out on the basis of an economic democracy that is in principle togetherness, efficiency, justice, sustainability, environmental insight, independence, and by maintaining a balance of progress and national economic unity.
Further provisions regarding the implementation of the article are regulated in the law.
Economic development based on economic democracy determines that the community plays an active role in a development activity. Therefore, the government is obliged to provide direction and guidance for an economic growth and to create a healthy climate for the development of the business world; instead the business world needs to provide a response to the direction and guidance and creation of the climate with real activities.
Intervention is a term in the political world where countries that disturb other countries' problems are clearly not their business. The definition of intervention is interference that transcends boundaries in political, economic, social and cultural affairs. As a result, countries that intervene are often hated by other countries.
The classical economist in 1776, Adam Smith, issued a book called "The Wealth of Nations", in which one of the principles offered was market freedom. Smith stated that implementing a free market would actually encourage an effective and efficient allocation of resources. Market demand and supply is an "invisible hand" that will stimulate the market towards its balance.
This principle rejects government interference, because it will disrupt the market mechanism itself. This principle is also often known as laissez-faire. This concept developed rapidly and its climax was when the industrial revolution emerged.