Development of Free Enterprise Economy in the U.S.

From mercantilism to market economy

http://www.bloomberg.com/news/2012-08-17/ryan-revives-old-national-fixation-on-free-enterprise-.html

What Mercantilism is…• In the beginning, England created 13 Colonies…and it was good.

• England established colonies based on MERCANTILISM– expand TRADE, – increase WEALTH – expand POWER

• The colonies existed to make $$$$$ for England– The Navigation Acts restricted American colonial trade– England had ‘monopoly’ on American economic activities– The colonists resented England’s control and smuggled!– This led to future restrictive laws, such as the Sugar Act….

What Mercantilism looks like…

“Triangular Trade” Colonies exported raw materials to England and were a market for England’s finished goods.

http://kindreda.edublogs.org/files/2010/09/blog6.jpg

What the Navigation Acts look like…

http://www.mrvanduyne.com/revcauses/tightgrip02.htm

What Free Enterprise is…• After the Revolution, Americans wanted to be…– economically self-sufficient

• 1st Secretary of Treasury Alexander Hamilton wanted– an economy based on industry– government support to ‘grow’ U.S. industry

• protective tariffs • capital from private investors and National Bank• Infrastructure to support business (roads, canals, railroads…)

• Free enterprise – the freedom of private business to operate competitively for a profit with little government regulation

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

Foundations of Free Enterprise

http://www.socialstudieshelp.com/Images/EcoPillars.jpg

Businesses can keep PROFIT to reinvest & grow the company

Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS

Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

COMPETITON fosters product development and lower pricing – good for business and customers!

Businesses are FREE to operate with little government regulation

CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)

What Free Enterprise looks like….