1. 5 Principles of Democracy & Free Enterprise
Principles of Government
Learning Unit
Mrs. Deming

2. 5 Basic Principles of Democracy
The American concept of democracy rests on these basic notions:
(1) A recognition of the fundamental worth and dignity of every person;
(2) A respect for the equality of all persons;
(3) A faith in majority rule and an insistence upon minority rights;
(4) An acceptance of the necessity of compromise;
(5) An insistence upon the widest possible degree of individual freedom.

3. Worth of the Individual
Each individual, no matter what his or her station in life, is a separate and distinct being
Sometimes the interests of the “many” outnumber the “individual”
Ex. Paying taxes, stopping at a stop sign
Serves the interest of the “many” who, as individuals, together make up that society

4. Equality of all persons
“All men are created equal”—Thomas Jefferson
Not all are born equal though…examples?
Democratic concept of equality insists that all are entitled to
1. equality of opportunity
2. equality before the law
Race, color, gender, religion….are we there yet?

5. Majority Rule, Minority Rights
Democracy argues that a majority of the people will be right more often than they will be wrong
Does not intend to have the “right” or “best” answers—just satisfactory solutions to public problems
Must always be willing to listen to a minority’s argument, hear its objections, bear its criticism and to welcome suggestions

6. Necessity of Compromise
Give and take among competing interests
Many different opinions, groups, interests in a democracy—destroy if you do not compromise
Many “sides” to many issues
Ex. Who should pay for the paving of a public street? Property owners? City? Share costs? Raise taxes? Only those who will use the street? Toll?

7. Individual Freedom
Individuals must be as free to do as he or she pleases as far as the freedom of all will allow
Absolute freedom can exist only in a state of anarchy—the total absence of government
Human beings desire both liberty and authority—must strike a proper balance

8. Democracy and Free Enterprise?
Free enterprise system—the American economic system
Characterized by the private ownership of capital goods, investments made by private decisions, success or failure determined by competition in the marketplace
Based on:
Private ownership
Individual initiative
Profit
Competition

9. Democracy and Free Enterprise System?
AKA Capitalism, Private Enterprise System, Market-Based System
Decisions are made by the market—Law of Supply and Demand
Ex. Iphone pricing…

10. Connection?
Democracy and the Free Enterprise System are NOT the same!!!
One is a political system and one is an economic system—both are firmly based on the concept of individual freedom
The two systems reinforce one another