Disadvantages:

i. Non-cooperation between the private and the public sector. In real - life, public - private sector partnership to promote economic progress is hardly found.Most often, the private sector is subjected to heavy taxes and restrictions that impact negatively on its performance, while the public sector is given subsidies and preferences.

ii. Inefficient public sector. The public sector of a mixed economy works inefficiently due to bureaucratic control, over-staffing of the personnel, corruption and nepotism. As a result, resources are misutilised and the level of production is low.

iii. Economic fluctuations. Periods of economic prosperity and hardship alternating which are characteristic features of a capitalist economy are equally experienced in a mixed economy. This is a result of the improper mixture of the features of capitalism and socialism.