Which economic system is characterized by both private enterprise and governmental control?

Democratic socialism is characterized by a blend of private enterprise and governmental control, making it unique among economic systems. In this model, the government plays a significant role in regulating and providing essential services and welfare programs while allowing for private ownership and market practices. This approach aims to balance the benefits of a free market—such as innovation and competition—with the need for social equity and public welfare.

Under democratic socialism, policies are typically aimed at reducing income inequality and ensuring that everyone has access to basic services, such as healthcare and education. This contrasts with purely capitalistic systems, where the market operates with minimal government interference, and with socialism, which often involves extensive government ownership of resources and limited private enterprise. The combination inherent in democratic socialism seeks to harness the advantages of both economic freedom and social justice.