American Free Enterprise Basic Principles Profit Motive Encourages people to self-improve Open Opportunity Everyone can compete Economic Rights Everyone has the same legal rights

Consumer’s Role This free enterprise system gives consumers the right to choose Consumers make their desires known by the purchases they make They can also join an interest group, an organization that tries to persuade public officials to act in favor of their view.

Government’s Role Information Provider Protect consumers from dangerous products and fraud Fuel efficiency tags on cars Energy efficiency tags on fridges/air-conditioners Promote health, safety and well being

Government’s Role Provide a safety net Welfare System Social Security Government aid for the poor Began with FDR following Great Depression Some say redistribution discourages productivity Social Security Unemployment Insurance Worker’s Compensation