Warm-up

1
Warm-up

• List 5 inventions that you could not live without
• List 5 that you do not need

2
Ch 3.1Benefits of Free Enterprise
3
Free Enterprise

• Today there are over 18 million unincorporated
  businesses.
• This includes 3 million minority-owned
  businesses.
• For centuries, people have considered America to
  be a land of opportunity.
• Why do you think The US has been such an economic
  success give one reason

4
WHY SUCCESS??

• Open land
• Natural resources
• Uninterrupted flow of immigrants with different
  backgrounds and experiences
• A tradition of free enterprise
• The social and political commitment to giving
  people the freedom and flexibility to try out
  their business ideas and compete in the
  marketplace

5
Constitutional Protections

• The bill of Rights to the United States
  Constitution guarantees certain individual
  freedoms. The constitution also guarantees
  important rights that allow people to engage in
  business activities.

6
Constitutional Protections

• Property Rights
• In many other countries the king or ruler has had
  the power to take peoples property for his own
  use. Early Americans wanted to protect against
  this and protected it through the 5th amendment.
  And the 14th amendment placed the same limitation
  on state governemnts.EXCEPT when there is a
  public reason and even then the government must
  pay the person fair value of the property.

7
Basic Principles of Free Enterprise

• In a free enterprise system, business owners and
  managers control all activity and operate in ways
  that will maximize their profits.
• The U.S has a tradition of open opportunity, the
  concept that everyone can compete in the
  marketplace.
• They also have the right of free contract,
  voluntary exchange and competition.

8
Consumers

• Consumers make their desires known thorough their
  economic dealings with producers or by joining
  interest groups.

9
Role of the Government

• Americans expect protection from problems that
  affect us all, such as air pollution or unsafe
  foods or drugs.
• Public disclosure laws require companies to give
  consumers important information about their
  products. Consumers can evaluate the aspects of
  the products they are considering buying.

10
Protecting Health, Safety, and Well-Being

• Although the government does not get involved in
  running private businesses, it does impose some
  basic restrictions.
• Businesses must follow certain environmental
  protection rules. Starting in the 1960s the
  federal government became actively involved in
  economic matters of public interest.

11
Negative effects of Govt Regulation

• 60s 70s regulation Increased costs to
  businesses, cutting into profits, slowing growth
  and increasing prices to consumers.
• 80s 90s regulations were downsized
• DO WE NEED GOVT REGULATION? How much is too much?
  Too little?