What is Government?. Lesson 6: What is the Best Economy?. What are the factors of production? How can we describe the free enterprise system and the laissez-faire theory? What is the role of government in a mixed economy? How are business organizations classified?
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Lesson 6: What is the Best Economy?
What are the factors of production?
How can we describe the free enterprise system and the laissez-faire theory?
What is the role of government in a mixed economy?
How are business organizations classified?
What role do profit and loss have in a free enterprise system?
The free enterprise system is an economic system characterized by private or corporate ownership of capital goods and investments that are determined by private decision rather than by state control.
Laissez-fairetheory holds that government should play a very limited, hands-off role in society.
The proper role of government in economic affairs should be restricted to functions intended to promote and protect the free play of competition and the operation of the laws of supply and demand.
Economists usually describe an economy in which private enterprise and governmental participation coexist as a mixed economy.
The American economy is a mixed economy.
Government at all levels in American society has some influence on the economy.
No such thing!
Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other.
Profit is the amount of money you earn from the business once costs incurred running the business have been subtracted.
If earnings are less than the costs, the business has not made a profit; instead, it has taken a loss.
Taking risks and making investments are an essential part of the capitalist system.
Socialism is an economic and political philosophy based on the idea that the benefits of economic activity—wealth— should be equitably distributed throughout a society.
Socialists a more equitable distribution of both income and opportunity, thus reducing great differences between rich and poor.
The means of production are either controlled or “owned” by the state.
Centrally Planned Economy
Fundamental purpose of
government to protect
What determines how much money someone makes?
And how many hours can you work per day?
How does the law prevent
this from happening?
Should the law be to
promote Justice or
What exists by itself?
Justice or injustice?
And what is the purpose of law,
if you accept that these three
rights are God-given, natural
Markets “encourage every man to apply himself to particular occupation, and to cultivate and bring to perfection whatever talent or genius he may possess.”
“[T]he most dissimilar geniuses are of use to one another; the different produces of their respective talents […] being brought, as it were, into a common stock, where every man may purchase whatever part of the produce of other man’s talents he has occasion for.”
Thus: markets opportunities choices diversity
Why is Capitalism Worth Defending?
I believe that the very act of believing in something causes us to distance ourselves from that thing, thus a duality is created: oneself and the thing in which one believes. Now since we all know that in order to fully understand a thing one must be that thing -- walk a mile in its shoes so to speak -- it seems obvious that the state of believing in something inevitably causes us to not truly understand that thing in which we believe. This noncomprehension leads to all sorts of difficulties. "I believe in love" has a better than even chance of leading to divorce, while "I believe in God" seems to end in variations on the Spanish Inquisition. But -- and it's a big but -- if one were love, one couldn't help but be affectionate and caring towards oneself and others. If one were God, one would act toward all beings and all things as if they were one's own creations. And that, my friends, is the secret of life in a two-second vanity card. Of course, the secret could also be "Sit, Ubu, sit." We have to keep an open mind.