The best economic system for Venezuela

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Let's start by defining what an economic system is. An economic system is simply a space where families, businesses, and the government produce, organize, market, and consume products and services available to members of a society, a specific sector, or an entire nation. This, too, is responsible for regulating the factors of production: land, labor, capital and entrepreneurship.

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However, a perfect economic system does not exist. There are economic systems that do not work or that have historically proven to be unsuccessful and others that, despite their imperfections, have generated immense wealth for the country and its citizens.

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There are different types of economic systems. For example, the market economy, the planned or authoritarian-style economy, the mixed economy, and the traditional economy.

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Let's briefly visit the mixed market economic system, which, in my opinion, is the most efficient to increase the production of goods and services, generate wealth for Venezuelans and a better distribution of income for society.

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A mixed market economic system will undoubtedly improve the standard of living of Venezuelans, and thus they will not have to depend on the few handouts from the Government, but on the opportunities that this economic system can offer.

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mixed market economy

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A mixed market economy is simply the combination of three economic systems: the market economy, the planned economy and the traditional economy. It is one of the most extensive, advanced and flexible economic systems.

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In any economic system, maintaining balance in the decision-making process is not only complicated, but also of utmost importance for the proper functioning and growth of the economy. For this reason, a mixed market economic system is the most appropriate to achieve this balance.

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For example, a mixed market economic system offers free market elements on the one hand and some government control on the other. In other words, the private sector coexists with the public sector. In this economic system, the two are responsible for the means of production and economic growth.

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On the one hand, the private sector plays a very important role in the production of consumer goods and services, while the Government is in charge of guaranteeing private property for individuals and companies, defense, infrastructure and public services. . In addition, the means of production are shared between the two, the Government and the private sector. In other words, elements of both capitalism and socialism are taken in this economic system. For example, the government may produce goods and services that may not be beneficial to private sector companies, but may be for the common good of the country.

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This alliance and cooperation agreement allows maintaining a high level of performance, as well as objectivity and rationality in making successful decisions for the economy.

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In addition, one of the reasons why the mixed economic system generates prosperity and a sustainable future for a country and its inhabitants is based on the free exchange between sellers and buyers. That is, in a free market economy, citizens have full freedom to choose based on their own interests. This relationship is what regulates production, distribution, supply and demand. These last two drive production and resource use, set prices, and are what force companies to be more competitive. Another aspect that benefits from this economic freedom is the financial system that meets the needs of individuals and companies.

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However, it is worth mentioning that a one hundred percent free market economy or without any type of regulation by the Government does not exist. In one way or another, all economic systems are subject to some kind of regulation.

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In conclusion, Venezuela has the potential to be a country that generates immense wealth for its citizens. The only thing we have to do is put in place an economic system that works for everyone.

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My most sincere and profound thanks to all my readers.