Market Economies

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Market, Centrally Planned, and Mixed Economies





There are really no perfect examples of a totally market economy or of totally centrally planned economy. Some countries are more market oriented, some are more centrally planned, but all are mixed to some degree. An example of a market economy is the United States of America. In a market economy, the government has little say in how the market is run. Though, the market sets the prices of goods and services, there also has to be some government taking part in the economy to set regulations and rules. Without the government partaking in how the country is run, there would be no organization. An example of a centrally planned economy is North Korea where prices, wages and supply of goods are determined by the government. But even in North Korea there are garden markets where goods are traded according to supply and demand. Countries such as Canada and Sweden are more in the middle with a classic mixed economy. In a mixed economy the market sets prices but the government regulates supply in some industries (such as agriculture and forestry). The “invisible hand” of the market place has proven itself to be the best mechanism for economic planning but there is a role for government regulation and intervention to protect people from being unfairly hurt by the market.


How Technology Affects the


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World of Work


Technology is key to a nation’s economic growth. Much of Canada’s economic growth after the second world war was due to more women working outside the home. This was made possible by labour saving technologies around the home. Technology also increases the productivity of a country enabling it to produce more goods and services. This in turn creates more jobs and higher wages. The (now defunct) Economic Council of Canada points out that much of Canada’s prosperity in the last fifty years has been the result of the development and application of technologies. It is critical, therefore, that if Canada is to continue to prosper in the world it must invest in the development and application of technologies. Cutting research budgets in times of economic hardship is not a good idea because it is through new technologies that the economy can improve.





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