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LESSON 3 · Capitalism, Socialism & the In-Between

Mixed economies use markets for most goods, while government steps in where markets consistently fail. Healthcare, education, defense, and infrastructure usually involve a big government role even in the most market-friendly nations.

Government also sets the rules of the game: antitrust laws block monopolies, consumer protection stops fraud, and labor laws set minimum standards. Tax policy redistributes income, social insurance covers unemployment and disability, and public investment builds what markets need but will not pay for alone.