Goals and Features of the US Economy : Goals and Features of the US Economy
What is the US economy? : What is the US economy? Capitalism
Mixed economy
Market: individual control of factors of production
Command- some gov’t reg
Traditional
Free Enterprise : Free Enterprise Business conducted with little gov’t interference
Many economic freedoms
Amount of gov’t interference can change: politics, situations
Features of Free Enterprise : Features of Free Enterprise Private property
Choice
Competition
Self-interest
Limited gov’t reg
Key idea: individual
Private Property : Private Property Individuals own property
Enter contracts
Use, buy, sell
4th Amendment
5th Amendment You can do what you want with your property
Choice : Choice Property
Producers
Consumers
Workers
Make own decisions, react to circumstances quickly You can choose your work…
Competition : Competition Many businesses compete for consumer $
Individuals compete for jobs, sometimes goods/services
Individuals choose what, how and for whom to produce
Fill wants & needs- many different goods & services
Encourages innovation and improvement
Keeps prices low
Self-interest : Self-interest Consumers and producers- look out for self
Each use resources efficaciously
Benefits society- cheap goods & services, efficient use of resources, innovation… People look out for selves In this world…
Limited Gov’t involvement : Limited Gov’t involvement Health/ safety laws
Banking practices
Public services
Anti-discrimination
Taxes
Redistribution of wealth
Interest rates…
Economic Goals… : Economic Goals…
Economic Freedom : Economic Freedom Freedom of choice
Producers and consumers
Anti-monopoly laws
Economic efficiency : Economic efficiency Best use of scarce resources
Gov’t grants for energy resources
Economic equity : Economic equity Economic justice
Costs and benefits shared equally
Grey area…
Social security
Where to build nuclear reactor…
Economic Security : Economic Security Protection against poverty, business and bank failures, emergencies…
Mortgage crisis
Unemployment benefits…
Economic stability : Economic stability Full employment: lowest amt. of unemployment
Price stability: overall prices remain relatively constant
Economic Growth : Economic Growth Increase efficiency and production
Increase the standard of living: economic well being
Production per worker increases faster than overall production