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START PREP
3.1 BENEFITS OF FREE ENTERPRISE
TEXTBOOK PAGE 51
THEN START READING SECTION
NOTES BEGIN AT 13.35
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