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3.1 BENEFITS OF FREE ENTERPRISE

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ECONOMICSMR. HOOD10 MARCH2014

3.1 BENEFITS OF FREE ENTERPRISE

ECONOMICSMR. HOOD`S NOTES10 MARCH 2014

SECTION FOCUSAMERICAN FREE ENTERPRISE IS BASED ON THE PRINCIPLES OF PROFIT MOTIVE, VOLUNTARY EXCHANGE, PRIVATE PROPERTY RIGHTS, COMPETITION AND FREEDOM FOR PRODUCERS AND CONSUMERS. THE U.S. CONSTITUTION SUPPORTS THE FREE ENTERPRISE SYSTEM BY GUARANTEEING PRIVATE PROPERTY RIGHTS, THE RIGHT TO MAKE CONTRACTS, AND FREEDOM FROM UNFAIR TAXATION.

INTRODUCTION

JOHN D. ROCKEFELLER

ANDREW CARNEGIE

WILLIAM GATES

STARTED WITH AN IDEA

THROUGH PERSISTANCE, VISION

+ EFFORT

BUILT THAT IDEA INTO A HUGE BUSINESS

SUCCESS

MADE THEMSELVES RICH + FUELED THE

ECONOMY

OBJECTIVE 1DESCRIBE THE TRADITION OF

FREE ENTERPRISE IN THE UNITED STATES AND THE

CONSTITUTIONAL PROTECTIONS THAT UNDERLIE

IT.

AMERICA CONSIDERED “LAND OF

OPPORTUNITY”

ANYONE FROM ANY BACKGROUND COULD ACHIEVE SUCCESS THROUGH

HARD WORK

WHY HAS AMERICA BEEN SUCH AN ECONOMIC

SUCCESS?

KEY FACTOR IS FREE ENTERPRISE

FREEDOM + FLEXIBILITY TO TRY OUT BUSINESS IDEAS

+ COMPETE IN THE MARKETPLACE

US BILL OF RIGHTS GUARANTEES CERTAIN INDIVIDUAL FREEDOMS

ALSO GUARANTEES RIGHTS THAT SUPPORT

BUSINESSES

5TH AMENDMENT: PROPERTY RIGHTS

16TH AMENDMENT: TAXATION

CONSTITUTION GUARANTEES RIGHT

TO MAKE BINDING CONTRACTS

OBJECTIVE 2EXPLAIN THE PRINCIPLES OF

THE US FREE ENTERPRISE SYSTEM.

FREE ENTERPRISE ECONOMY HAS SEVERAL KEY

CHARACTERISTICS

PROFIT MOTIVE

IMPROVE MATERIAL WELL-BEING

OPEN OPPORTUNITY

EVERYONE CAN COMPETE IN MARKET

ECONOMIC RIGHTS

LEGAL EQUALITY + PRIVATE PROPERTY + FREE CONTRACT

+ VOLUNTARY EXCHANGE + COMPETITION

OBJECTIVE 3IDENTIFY THE ROLE OF THE

COSUMER IN THE US ENTERPRISE SYSTEM.

GIVE CONSUMERS FREEDOM TO MAKE OWN ECONOMIC

CHOICES

CONSUMERS MAKE DESIRES KNOWN TO

PRODUCERS

SIGNAL TO PRODUCERS WHAT TO MAKE + HOW MUCH TO

MAKE

CONSUMERS JOIN CONSUMER GROUPS TO MAKE

WISHES KNOWN

OBJECTIVE 4DESCRIBE THE ROLE OF THE

GOVERNMENT IN THE US FREE ENTERPRISE SYSTEM.

GOVERNMENT HAS POSITIVE EFFECTS ON BUSINESSES +

CONSUMER

PUBLIC DISCLOSURE LAWS

FULL INFORMATION ABOUT PRODUCTS

PUBLIC INTEREST CONCERNS

OF PUBLIC AS A WHOLE

GOVERNMENT HAS NEGATIVE

EFFECTS ON BUSINESSES + CONSUMER

REGULATION WAS COSTLY, CUT INTO PROFITS, AND STIFLED

COMPETITION