Which economic system combines individual ownership of businesses with state ownership of essential industries?

Democratic socialism is characterized by a blend of individual ownership and state ownership, particularly in essential industries. In this economic system, the government controls certain critical sectors, like utilities and healthcare, ensuring that they serve the public interest and are accessible to all citizens. This reflects a commitment to social welfare and equality, while still allowing for private ownership and entrepreneurship in other areas of the economy.

This balance aims to address the needs of the community and mitigate the disparities that can arise from purely capitalist systems, where everything is privately owned. In democratic socialism, the role of the state is more pronounced than in systems like free enterprise, where the emphasis is on minimal government intervention and maximum individual freedom in business.

Welfare capitalism and communism also have distinct differences from democratic socialism. Welfare capitalism includes a mostly capitalist economy with extensive social welfare programs, but it does not necessarily involve state ownership of essential industries. Communism, on the other hand, advocates for complete state ownership of all means of production, eliminating private ownership entirely, which starkly contrasts with the principles of democratic socialism.