1. American Free Enterprise
Basic Principles
Profit Motive
Encourages people to self-improve
Open Opportunity
Everyone can compete
Economic Rights
Everyone has the same legal rights

2. 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.

3. Government’s Role Information Provider
Protect consumers from dangerous products and fraud
Fuel efficiency tags on cars
Energy efficiency tags on fridges/air-conditioners
Promote health, safety and well being

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