There are many different definitions of a market economy, some of which allow for government intervention. In a 澳洲幸运5官方开奖结果体彩网:laissez-faire free-market economy, the goℱvernment ꧂plays no role in economic decision-making.

Government Intervention in a Market Economy

Many would consider the United States to be a market economy, despite its heavy levels of government control and re༒gulation.

In a certain sense, a government can intervene in a market economy up to the point that it is no longer considered a market economy. Elements of 澳洲幸运5官方开奖结果体彩网:capitalism still exist as long as private individuals are allowed to ow⛦n property and profit from its us♕e.

Three Types of Economic Systems

Economic systems are divided into three broad categoriꦑes: free market, mixed and command. The determining factor comes down to who owns and controls property and the factors of production.

In a free-market economy, private individuals or groups are in control. The government is in control of a command economy. Mixed economies have 澳洲幸运5官方开奖结果体彩网:elements of both. Most ec꧂onomies in the world today are mixed, though so🌠me are command.

An example of a command economy would be communist North Korea. The North Korean government owns and controls all property, production decisions and allocation of resources. The old Soviet Union was also a command economy. These are not considered market econo🌌mies.

The purest 澳洲幸运5官方开奖结果体彩网:free-market economy would conceivably lack a monopolistic government and coercive taxation. Historical evidence struggles to come up with concrete examples of a government-less free-market system. The closest well-documented examples in modern history would be 澳洲幸运5官方开奖结果体彩网:Hong Kong in the 1950s and the U.S. duri🦄ng the 19th century (excluding the Civil War period)꧂.

Clearly, even the most free-market economies by historical standards have some level of government influence. Some libertarian and free-marke🧸t proponents, known as minarchists, suggest that a true market economy would only have three government functions: courts, police, and military.