American Free Enterprise  Basic Principles Profit Motive Profit Motive Encourages people to self-improveEncourages people to self-improve Open Opportunity Open Opportunity Everyone can competeEveryone can compete Economic Rights Economic Rights Everyone has the same legal rightsEveryone 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 Fuel efficiency tags on cars Energy efficiency tags on fridges/air- conditioners Energy efficiency tags on fridges/air- conditioners  Promote health, safety and well being

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