The Importance of the Free Enterprise System
Free enterprise is very important in an ever growing world. The idea of free enterprise, or capitalism, is that any individual has the opportunity to create a business and sell a good or provide a service with almost no government intervention. A capitalistic economy helps both the supplier of goods and the consumer of the goods. One of capitalism’s basic principles is that an individual works hard for incentives. Free enterprise means that businesses are directed by the laws of supply and demand. Capitalism also forces businesses to produce things in an efficient way. Another great aspect about free enterprise is that there is a lot of flexibility in the economy. These are just some of the many factors that make a free enterprise economy so important.
Incentives are really what drives the capitalistic economy. There are incentives in every facet in a capitalistic economy. In a free enterprise system there is a huge financial incentive to work hard and create an effective business. While having a successful business the business owner gets to keep all of the money his business earns. So there is large incentive to take a chance and create a business that could make money for the risk taker. But incentives do not only reach the risk takers of the world. There is incentives for any employees, for instance if an employee works hard and works longer than expected for overtime, the worker gets compensated extra for that extra work and extra time that has been put in. Incentives not only push people to take risks, but also incentives push people to work harder and give more effort into their job. The free economy system is based on incentives and without having something to work for there ...
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...free enterprise system is very important in today’s society. Because of the capitalistic economy people have incentives to work harder and longer and maybe entice people into starting businesses that would not have been there succeed. The law of supply and demand is a great idea for the free enterprise system because it helps producers and consumers come to an agreement on a products cost. The free enterprise system also helps companies keep striving to become efficient and to produce things cheaper so that the public can get products for cheaper. The capitalistic economy makes a way for companies to change with society in a way that businesses are happy because their sales are improved and consumers are happier because they get the products they want. The free enterprise system is the engine that drives the United States economy and continues to work to this day.
The free enterprise system is a debatable topic because it allows for competition in the business market, which may or may not work in everyones favor. A good example would be Bill Gates, in which the enterprise system worked successfully for him and helped him become a billionaire. In a free enterprise system, producers decide everything about their products or services, including their prices, ingredients, and what they choose to do with their profits. This also gives freedom to consumers to make their own economical choices. This has allowed businesses to engage in competition, and has been beneficial to many, especially Bill Gates.
...the birth of capitalism liberated the goals and means of work. Capitalism allowed individuals to own and manage their own business and reflected the secular mind frame derived from the Renaissance Era. The individual is the unit on which capitalism is based. Bonds between merchants was based on free competition rather that the need to trade. This liberating system of economy allows rise for the individual to direct his own business.
Overall, free market is a necessity if there is to be any forward movement and progression of society. In a controlled system nothing ever changes, and while this can prevent change for the worse, it also stunts change for the better. In free enterprise systems, people with brains and determination, such as Andrew Carnegie, are able to take advantage of new opportunities. While this system will not help individuals float along, and they are liable to sink (into debt and/or remorse), those who have the courage to try will find that success is only a risk
Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.
The free enterprise system makes it essential for new products to be thought of and reflect what consumers want. Apple products were thought of because they were something new and different and because they were something that people would want. Without the free enterprise system and the constant changing needs and wants of consumers Apple products likely would never have been thought of. Some people may argue that the free enterprise system had no influence on Jobs's success with Apple. The free enterprise system motivates entrepreneurs like Steve Jobs to constantly be thinking and striving for something new and innovative.
The free enterprise system allows individuals to make their own economic decisions without government restriction.Oprah Winfrey is just one entrepreneur who would have not been made successful without this system. This woman is a self-made billionaire with respect to her pursuance in acting, producing, television hosting, and as chairman of Harpo Inc. Many charities have been impacted from the donations of Winfrey and her actions. As a once poor and African American she is living proof that free enterprise allows anyone to become successful.
To begin, capitalism is the economic ideology that everything is primarily focused towards making profit through the production and distribution of a product. In the article “Capitalism: Where Do We Come From?” By Robert Heilbroner and Lester Thurow, they provide insight on how capitalism has changed over the years and the impact it now has in today’s society. “There were no factors of production before capitalism. Of course, human labour, nature’s gift of land and natural resources, and the artifacts of society have always existed. But labour, land, and capital were not commodities for
Capitalism is what made our country strong, and it needs to be protected from its enemies. The study of capitalism reveals that this type of system inspires creative thinking and rewards successful innovation financially. This drives the economy forward in an excellent way. In his article, Arthur Brooks makes a strong argument which validates the need for free enterprise to remain unrestricted, and free to execute business unfettered (Brooks 545). He points to the intentions of our government, in its infancy, by quoting Thomas Jefferson, in regard to our economic system. Jefferson said at his first inaugural address "A wise and frugal government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of bread it has earned" (qtd. in Brooks 545). In contrast, socialism is a system that advocates the control of production and distribution, of capital, and land. Socialism is more closely related to a command system, such as communism, than it is to capitalism. Communism distributes wealth equally to all. Robin hood is a fascinating tale that can be a demonstration of communism. Take from the rich and give it to the poor. Most people do not consider themselves to be wealthy. That is because it is human nature to alway...
Carnegie states, “Under the law of competition, the employer of thousands is forced into the strictest economies, among which the rates paid to labor figure prominently, and often there is friction between employer and the employed, between capital and labor, between rich and poor” (393). It is this competitive nature which allows the hardest working individuals to rise above their peers, create personal wealth and continue to accumulate wealth. Competition is a beneficial to capitalism. A company can produce an item and sell the
The free enterprise system has aided us as Americans and what we stand for throughout our entire American history. As citizens, we inherit many endless rights and freedoms. We hold these privileges dear to each one of us and that is what shapes this country. One of the most prodigious privileges is the free enterprise system. The free enterprise system is seen as an essential to a market economy.
Economics freedom can be best defined as the freedom of an individual to prosper within a country/state without the intervention from government or economic authorities relating to the individuals human resources, labor or private properties. Economics Freedom can be best utilized/seen in a capitalist economy due to it 's numerous advantages which surpasses those of a socialist economy, also according to Freidrich Hayek in his book the road to serfdom, mentions that the economic freedom of capitalism is a requisite of political freedom, therefore stating that there cannot be economic freedom without the issue of political freedom.He tries to pass on his point saying that the market mechanism is the only way to produce and
The removal of rewards adds idleness and inability to focus because the people have no motivation to work their hardest. They know that every night when they get home they will have the same amount of food to eat whether they work their hardest or barely at all. The essential nature of capitalism is social harmony through the pursuit of self-interest. Under capitalism, the individual's pursuit of his own economic self interest simultaneously benefits the economic self interest of all others.
Any economic philosophy can be the rise and downfall of a society, as they each have their positive and negative aspects. Capitalism can be great because more economic freedom promotes more governmental choices in the hands of the people, people seem to be more likely to push themselves to work hard and produce because their incentive is money (which, in this society, is completely necessary), and a "trickle down effect" with money can be seen in this economic circumstance as more people make more money and this enables a higher standard of living. Capitalism can be negative because it leaves room for monopolies, it can create barriers between different incomes, and leaves room for collapse (such as America's economic depression in the
It is clear that capitalism is more advantageous than communism in every aspect in the economy. All stakeholders such as common people, state, government, banks, and investors will benefit more in a capitalist economy. The best way to describe a communist economy is as an old lady who is demotivated in her life and just wants to eat and sleep, while a capitalist economy can be described as a motivated young man who wants to keep achieving more and more in his life.
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.