1. Capitalism and Economic Goals

2. Economic Goals Freedom Efficiency: MOST important for growth
Growth: Higher GDP
Equity: Fair chance to succeed
Security: Protection
Stability: Stable prices, full employment

3. Capitalism: THE BEST PATH TO PROSPERITY
Market economic system
Free enterprise
Entrepreneurship
Economic freedom
Voluntary exchange
Private property rights
Profit motive
Competition
Investment for growth

4. Path to Growth Productivity Investment Specialization
Efficient use of resources (land, labor, capital)
Investment
Capital goods
Human capital
Specialization
Regional specialization
Division of labor

5. Capital Investment Purchasing capital goods
Equipment that increase productivity
Farmer  tractor, reaper, plow
Mining  drill, dump truck
Construction  digger, hammer, truck
Investment in human capital
Building schools
Investment growth, productivity, advanced goods, labor-saving

6. Specialization Increases productivity Regional specialization
Georgia  peanuts
Florida  oranges
California  grapes
Labor specialization
Division of labor
Assembly line production
Dividing jobs up in small business

7. Entrepreneurship
CRITICAL factor of production in capitalist market economy
Encouraging entrepreneurship leads to new products, and new methods of production
Bill Gates: entrepreneur, founder, Microsoft
$42 Billion in personal wealth
Over 95,000 jobs created
Steve Jobs: entrepreneur, founder, Apple
$5.5 Billion in personal wealth
Over 35,000 jobs created
Entrepreneurship creates jobs
Entrepreneurs decide how to use labor

8. Role of Government in Capitalist Economy
Regulation (Rule-making)
Provides benefits AND costs to BOTH consumers and businesses
Examples
Seat belts in all cars (effects?)
No job discrimination based on race (effects?)
Deregulation (Elimination of rules)
Government stops controlling airline fares and routes (effects?)