Get textbook What did economist Milton Friedman mean when he wrote: “Economic freedom is…an indispensable means toward the achievement of political freedom” E. Napp

When people have the freedom to make their own economic decisions, they are less likely to accept political restrictions imposed by an oppressive tyrant – they will want to govern themselves. E. Napp

Preserving Economic Freedoms In this lesson, students will identify characteristics of the U.S.A.’s Free Enterprise System. Students will be able to define and/or identify the following terms: Free Enterprise Public Policy Public Disclosure Laws Occupational Safety and Health Administration Environmental Protection Agency

E. Napp The government insists that warning labels are placed on potentially dangerous products. Companies don’t always want consumers to know.

E. Napp Our Free Enterprise system is mostly a free market economy. However, the government acts like a lifeguard and intervenes in the economy when necessary.

E. Napp Why does the Government sometimes need to intervene in the economy? There are many reasons why the government intervenes in the economy. Some reasons for government intervention are: To inform consumers about products To protect the environment To prevent the sale of dangerous goods To protect workers

E. Napp The government does not allow the sale of dangerous products like illegal drugs. The government protects the public.

E. Napp Public Policy The public interest is the concerns of the public as a whole. A safer car is in the public interest. Public policy is laws and standards on topics of public interest. Requiring car manufacturers to install seatbelts is an example of public policy.

E. Napp The government also requires companies to provide full information about their products.

E. Napp Public Disclosure Laws Public disclosure laws are laws requiring companies to provide full information about their products. Public disclosure laws exist to ensure that consumers are knowledgeable about the products they purchase. An informed consumer is a protected consumer.

E. Napp We cannot merely look at a product and know how much fat or cholesterol it contains.

E. Napp Workers also need the government’s protection. What prevents business owners from exploiting its workers?

E. Napp Occupational Safety and Health Administration (OSHA) OSHA is a government agency that issues regulations on workplace safety. OSHA conducts workplace inspections. OSHA requires public disclosure of hazards to workers.

E. Napp What prevents companies from dumping harmful chemicals in our rivers?

E. Napp Environmental Protection Agency The EPA is a watchdog agency that aggressively targets polluting industries by imposing regulations, cleanup requirements, and penalties. The EPA protects the environment and ensures that companies do not harm the environment.

E. Napp Questions for Reflection: Define Free Enterprise. Why does the United States have a Free Enterprise system? Provide an example of Public Policy. Why do Public Disclosure Laws exist? How does the EPA benefit society? How does OSHA benefit workers?