Concepts of Democracy

Foundations Worth of the Individual-each person has worth and

dignity Equality of Persons-“All men are created equal” Majority Rule, Minority Rights-Majority may not

oppress the minority Necessity of Compromise-people must work

together Individual Freedom-people are free as far as the

freedom of all will allow

The Free Enterprise System Characteristics Free enterprise-economic system

characterized by private ownership of goods and investments

Must have a commitment to individual freedom to work

Private ownership Investments made by private decision, not the

government

Continued…the Free Enterprise System Characteristics Success of businesses determined by

competition in the market Four Characteristics of Free Enterprise

Private Ownership Individual Initiative Profit Competition

Free Enterprise System (How it works) Often called capitalism or private enterprise

system People indirectly determine what is produced

not government Production is directly based on supply and

demand

Continued…How it works When supply is plentiful prices drop, when scarce

prices rise When demand is low prices drop, when high prices

rise Most democracies are free enterprise but they are not

the same thing: Democracy is a political system Free enterprise is an economic system Both are based in individual freedom

Government and Free Enterprise The basis of America’s system is the free

market, however, government does play a role We have a mixed economy

A mixed economy exists when there is some government regulation on the free enterprise

Government’s role in the economy is to protect the public