Development of Free Enterprise Economy in the U.S.

1. 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

2. 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 • TheNavigation Acts restricted American colonial trade • England had ‘monopoly’ on American economic activities • The colonists resentedEngland’s control and smuggled! • This led to future restrictive laws, such as the Sugar Act….

3. What Mercantilism looks like… http://kindreda.edublogs.org/files/2010/09/blog6.jpg “Triangular Trade” Colonies exported raw materials to England and were a market for England’s finished goods.

4. What the Navigation Acts look like… http://www.mrvanduyne.com/revcauses/tightgrip02.htm

5. 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

6. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL(money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

7. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

8. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

9. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

10. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

11. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

12. Foundations of Free Enterprise CAPITALISM – the freedom of individuals to invest their CAPITAL(money) in businesses of their choice in hopes of making money (profit!) Businesses can keep PROFITto reinvest & grow the company Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation COMPETITONfosters product development and lower pricing – good for business and customers! Ownership of private property (and other assets) by individuals or businesses allows full control of decision making http://www.socialstudieshelp.com/Images/EcoPillars.jpg

13. What Free Enterprise looks like….