Why mixed economies exist?

Why mixed economies exist?

Mixed economies exist for better allocation of resources:

1) Private sector functions on profit basis producing goods and services that are in demand
2) Public sector caters to the social interests of the economy, producing goods and services that are: a) Intrinsically desirable b) Collectively consumed c) Zero-priced d) Not produced by the private sector e) Inadequately produced by the private sector

The government could also provide Planning and Guidelines on what to produce, how to produce, how to distribute and so on.

The government also provides the legal framework for the smooth functioning of the price mechanism in the form of rules, regulations and laws as well as the judiciary system

The government acts to prevent exploitation, Reduce income inequality, Reduce unemployment and increase employment
Generate economic growth and development
Maintain price stability

The main aim of government is to complement the private sector and not to replace it.