Free Enterprise

By: Antonio Briseno

Introduction

Also called market economy and capitalists. Government is only involved in protection and safety regulations.
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The Facts

The invisible hand

1.) Competition- allows competition to drive economy, also stops other companies from monopolizing a good.

2.) Profit Motive- this is one of the few economies that allows for people to get rich on their own and make profits.

3.) Scarcity- in this economy it runs on supply and demand

Aspects of Free Enterprise Economy

Business

Are able to organize their own goods and services, and individuals are able to create their own goods to sell for profit.


Market

The market is a place for buyers and sellers to meet and exchange goods. The sellers or consumers buy based on desire and price. And the price is based on the demand and profit for the good.


Households

This is where and how consumers make decisions.


Government

The government in a free enterprise economy provides protection for consumers and businesses, but has safety regulations so that the government does not have too much power.

The Promise of Free Enterprise

Refutations

Some people say, "The problems arise when the two principle aspects of free enterprise, supply and demand, form situations that financially exploit buyers and sellers. The problems also affect the economy as a whole, resulting in recession, inflation and unemployment." But in fact in order for a buyer or seller to exploit or be exploited by the market economy the other will also be exploited, so they seem to balance each other out because although it is easy to exploit they themselves one would know they will be exploited as well.

Conclusion and Incentives

Here's why your country should try free enterprise too...In a free enterprise economy there is a big incentive to work hard and make your own business, because as a owner you get to keep all the money you earn. For instance if you had a sandwich shop and you wanted to work overtime to attract more customers you would get the money for doing the extra work.