FREE ENTERPRISE SYSTEM

What is the difference between open opportunity and legal equality?

•Open opportunity allows people to participate in the

market by free choice• Legal equality-everyone has

the same economic rights

What besides profit, if anything, might motivate a person to start a business?

•Non profits fulfill a social need and some people

create enterprises for that as well

What fads like the pet rock have you seen come and go?

• Pokemon• Tickle Me Elmo

• Cabbage Patch Kids• Virtual Pets• Beanie Babies• Silly Bands

List and explain the legal rights built into the free enterprise system.

• Open opportunity: everyone has the ability to enter the market• Free contract: everyone has the right

to decide which contracts they enter into• Legal equality: everyone has the

same economic rights

Explain the chain and effect reactions since the mid-1990s that led to the lower book

prices for American consumers.

Small book stores

1995 Borders and

Barnes & Noble

compete

Pass along major

savings

AmazonLower prices;

access to everything

More websites

FEATURES OF THE FREE ENTERPRISE SYSTEM:

1.) Owning private property is a basic freedom in the free enterprise system.

2.) People and businesses are free to enter into a voluntary exchange agreement.

3.) People are free to “vote with their dollars”.

4.) People are free to start a business and or choose their career.

5.) People are free to focus first on their own self-interest.

6.) Little government interference.

GOALS OF THE FREE ENTERPRISE SYSTEM:

1.) Maintain economic freedom!

2.) Make the best use of scarce resources.

3.) The government tries to ensure that every citizen shares in the benefits.

4.) Economic stability – employment and stable prices.

5.) Economic security (insurance)

6.) Economic growth

MILTON FRIEDMAN

MAJOR WORKS:CAPITALISM AND FREEDOM

FREE TO CHOOSEBRIGHT PROMISES, DISMAL

PERFORMANCES: AN ECONOMISTS PROTEST

www.sodahead.com

MILTON FRIEDMAN

HIS BELIEFS ON GOV’T. ROLE:MARKET SHOULD BE FREE TO

OPERATE IN ALL FIELDS & PROFESSIONS (LAW,

MEDICINE), CUTTING BACK ON REGULATIONS

www.another-green-world.blogspot.com

MILTON FRIEDMAN

BELIEFS ON LICENSING:LOWERING THE LICENSING

STANDARDS WILL BRING MORE OF THESE PROFESSIONS

INTO THE MARKET

www.distributedrepublic.net

MILTON FRIEDMAN

ACCOMPLISHMENTS:ECONOMIC ADVISOR TO

NIXON & REAGAN AND TO BRITISH PRIME MINISTER

MARGARET THATCHER

www.kitmantv.blogspot.com

BIBLIOGRAPHYwww.ctdol.state.ct.uswww.filipspagnoli.wordpress.comwww.amazon.comwww.couponcravings.comwww.earth-health.blogspot.comwww.nydailynews.comwww.seekingalpha.comwww.american.com