Benefits of Free Enterprise

Basic Principles of Free Enterprise There are several key characteristics that make up free enterprise. Profit Motive Open Opportunity Legal Equality Private Property Rights Free Contract Voluntary exchange Competition

Profit Motive The drive for the improvement of material well-being. Making money is the most important aspect of motivation

Private Property Rights The right to control your possessions as you wish. You may own a and operate a business at any place of your choosing. Zoning laws

Open Opportunity The ability for anyone to compete in the marketplace. Anyone can enter and leave the market at their own will One can also make any product they wish

Legal Equality Legal rights to all All people and companies are protected with the same rights, rules, and regulations

Free Contract The right to decide what agreements in which you want to take part. You have the sole responsibility to ensure contracts are fair

Voluntary Exchange The right to decide what and when you want to buy and sell a product. In reality…the consumer controls the economy with their wants and needs Consumers can decide how to exchange goods and services

Competition The rivalry among sellers to attract consumers. Business fight each other for consumer dollars….profit motive The key is to show why consumers need to have their product

The Consumer’s Role A fundamental purpose of the free enterprise system is to give consumers the freedom to make their own economic choices.

Consumer’s Role Through their economic dealings with producers, consumers make their desires known. When buying products, they indicate to producers what to produce and how much to make.

Interest Groups Consumers can also make their desires known by joining interest groups They are private organizations that try to persuade public officials to vote according to the interests of the groups’ members. NRA (National Rifle Association) PETA (Ethical Treatment of Animals) NEA (Advocate of Educational Professionals)

Government’s Role Americans expect the government to protect them from potential problems that arise from the production of various products or the products themselves.

Public Disclosure Laws Laws that require companies to provide consumers with important information about their products such as fuel efficiency of automobiles side-effects of medication.

Public Interest Both state and federal governments’ involvement in concerns of the public as a whole environmental protection sanitary food production.