1. Concepts of Democracy

2. Foundations  Worth of the Individual-each person has worth and dignity  Equality of Persons-“All men are created equal”  Majority Rule, Minority Rights-Majority may not oppress the minority  Necessity of Compromise-people must work together  Individual Freedom-people are free as far as the freedom of all will allow

3. The Free Enterprise System Characteristics  Free enterprise-economic system characterized by private ownership of goods and investments  Must have a commitment to individual freedom to work  Private ownership  Investments made by private decision, not the government

4. Continued…the Free Enterprise System Characteristics  Success of businesses determined by competition in the market  Four Characteristics of Free Enterprise Private Ownership Individual Initiative Profit Competition

5. Free Enterprise System (How it works)  Often called capitalism or private enterprise system  People indirectly determine what is produced not government  Production is directly based on supply and demand

6. Continued…How it works  When supply is plentiful prices drop, when scarce prices rise  When demand is low prices drop, when high prices rise  Most democracies are free enterprise but they are not the same thing: Democracy is a political system Free enterprise is an economic system Both are based in individual freedom

7. Government and Free Enterprise  The basis of America’s system is the free market, however, government does play a role We have a mixed economy  A mixed economy exists when there is some government regulation on the free enterprise  Government’s role in the economy is to protect the public