Freedom of enterprise. The idea that firms should be free to obtain and use resources it needs to produce goods of its choosing and sell them to markets of its choosing is an idea fundamental to how Capitalism works. So is freedom of enterprise everywhere in America?
In the real world, governments often get involved in many markets, and usually for good reasons. Most people agree that medication and potentially addictive drugs must be regulated by the government to protect consumers from being harmed. Similarly, guns and weapons sales should also be regulated to avoid having them fall into the wrong hands. Then there are banks. Banks should be regulated to make sure protections are in place for people’s life savings in case the bank runs into financial trouble and needs to declare bankruptcy.
So while many products have freedom of enterprise in America, many others don’t, but usually for good reasons.
This is a really great post explaining freedom of enterprise and how it is applied in our markets. The idea, that we should be able to choose what we produce and who we produce it for, is integral to our economy. However, like many things it is a double edged sword. There are certain products that don't apply to this, such as the ones you said above like drugs and weapons. This is a great example of how many economic theories can't apply in all situations and there are always other factors to take into account.
ReplyDeleteThank you for that clarifying post Kaylyn! I think it’s important for many to understand why and when the government must step into certain economic situations. Understanding government regulation of medications and federal reserve banks, I am befuddled as to the federal regulation of firearms. There seems to already be certain laws in each state regarding the use and ownership of guns. However, I continue to wonder why no steps have been taken on a national level in terms of gun reform to secure the greater public from dangerous situations which have continued to take place in recent times. Overall, I appreciate your distinctions of particular conditions in which free enterprise isn’t applicable in America.
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