<P> The German social market economy is the economic policy of modern Germany that steers a middle path between the goals of social democracy and capitalism within the framework of a private market economy and aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of unemployment, good working conditions, public welfare and public services by using state intervention . Under its influence, Germany emerged from desolation and defeat to become an industrial giant within the European Union . </P> <P> The American School (also known as the National System) is the economic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century . It consisted of three core policy initiatives: protecting industry through high tariffs (1861--1932; changing to subsidies and reciprocity from 1932--1970s), government investment in infrastructure through internal improvements and a national bank to promote the growth of productive enterprises . During this period, the United States grew into the largest economy in the world, surpassing the United Kingdon (though not the British Empire) by 1880 . </P> <P> This type of mixed economy specifically refers to a mixture of private and public ownership of industry and the means of production . As such, it is sometimes described as a "middle path" or transitional state between capitalism and socialism, but it can also refer to a mixture of state capitalism with private capitalism . </P> <P> Examples include the economies of Singapore, Norway, Vietnam and China--all of which feature large state - owned enterprise sectors operating alongside large private sectors . The French economy featured a large state sector from 1945 until 1986, mixing a substantial amount of state - owned enterprises and nationalized firms with private enterprise . </P>

Mixed economies exist where some allocation of resources is