1. Capitalism and Economic Freedom Day 2
Subtitle

2. Warm Up
Explain how economic freedom leads to economic growth and in turn, creates a wealthy nation.

4. Economic Freedom
Individuals can choose: jobs, employers, how to spend money
Businesses can choose: best workers, choose most profitable goods and services to produce, what to charge
Voluntary exchange: Buyers and sellers engage in transactions freely
Both are better off after the exchange
Private property rights: allows people to own and control
Includes houses, cars, skills, talents
Provides incentive to work, save, invest

5. Profit: people, organizations better off than before
Profit Motive: Entrepreneurs – start new businesses in search of profit
Many fail, very few become extremely wealthy
Profit: people, organizations better off than before
Competition: Attract consumers while lowering costs
Results in goods/services being produced at the lowest cost for those willing and able to pay for them

6. Role of Government
Protector: Laws against false advertising, unsafe food and drugs, discrimination
Provider and consumer: Provides defense, education, welfare
Regulator: Preserves competition, regulates insurance rates, etc
Promoter of national goals:
Mixed economy in the U.S.

7. Trade-offs Among Goals
Example: banning foreign cars
1. Benefit: Keeps full employment in the American car industry
2. Cost: Consumers have fewer choices
Example: raising minimum wage
1. Benefit: Workers have more money, more equality
2. Costs: Increases cost of production; restricts freedom to set wages

8. Read: Should We Raise the Minimum Wage?
Fill out your Building an Argument Outline—Due tomorrow!