The American economy is as prosperous as it is today due to the responsibilities and rights of the people and the government combined. The government lends a supporting role in the economy instead of one of domination and restriction, and the Constitution makes sure of this policy. The two most important Constitutional guarantees are Property Rights and Taxation Limitations. Entrepreneurs are able to locate their businesses anywhere they choose without the fear of it being taken by the government for no reason. Their private property rights give the privilege to the people to make their own decisions and control what takes place on their property. In other countries and times, authoritative figures tell people where they can or cannot locate, and can take back that property as easily as it was loaned out. After struggles in the past, Taxing limitations were placed so that the government can tax, but in a way that is not overly taxing the people. Although our economy is based mainly upon the peoples of America, the government does impose certain restriction on companies to regulate the economy in an efficient manner. Businesses must follow health and safety regulations for the wellness of the population, and there are also Public disclosure laws that forces the release of information on all goods and services, thus letting the consumer choose what they truly want. Where as other places with a more Centrally Planned Economy make the decisions for the people on what they should buy.
Consumers, being our economy's foundation, have one main role, buying products and conveying the needs and wants of consumers everywhere. Another way to do so, instead of just buying goods and services, is by joining an Interest group. These private organizations try to persuade officials to act according to the interest of the group over issues such as taxation, land use, and farmer aids.
Free enterprise has basic principles that make america's economy the way it is. One of the more important ones being Profit motive, which encourages businesses to improve their material goods. Other economic systems have the government controlling their activity and production. However, business owners in America make their own choices of what they want to buy and sell through the right of Voluntary exchange. Also in the american economy, open opportunity is a traditional benefit that helps everyone with a business to engage in competition in the market. This principle does not discriminate against minorities because there is legal equality that gives everyone the same legal rights. Other countries that refuse to give minorities economic opportunities lose a lot of productivity and the competition that keeps the prices of goods and services low and at their proper value like the american government has it. One last principle is the right of free contract. This gives the people the right to decide what agreements they would like to enter.
Although the Free Market Economy is not suitable for developing countries due to the freedoms of price variation caused by the system of supply and demand , developed countries such as the United States are able to prosper through such system.
Consumers, being our economy's foundation, have one main role, buying products and conveying the needs and wants of consumers everywhere. Another way to do so, instead of just buying goods and services, is by joining an Interest group. These private organizations try to persuade officials to act according to the interest of the group over issues such as taxation, land use, and farmer aids.
Free enterprise has basic principles that make america's economy the way it is. One of the more important ones being Profit motive, which encourages businesses to improve their material goods. Other economic systems have the government controlling their activity and production. However, business owners in America make their own choices of what they want to buy and sell through the right of Voluntary exchange. Also in the american economy, open opportunity is a traditional benefit that helps everyone with a business to engage in competition in the market. This principle does not discriminate against minorities because there is legal equality that gives everyone the same legal rights. Other countries that refuse to give minorities economic opportunities lose a lot of productivity and the competition that keeps the prices of goods and services low and at their proper value like the american government has it. One last principle is the right of free contract. This gives the people the right to decide what agreements they would like to enter.
Although the Free Market Economy is not suitable for developing countries due to the freedoms of price variation caused by the system of supply and demand , developed countries such as the United States are able to prosper through such system.