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CompetitionProducers compete for the consumer's dollar. This is the regulating for in a free market. It insures that prices are fair and the products are good quality. Businesses must constantly improve themselves in order to keep their customers. Adam Smith said self-interest and competition are "the invisible hand of the marketplace." This means that these two factors work together to regulate the market.
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Private Property
Private property is owned by an individual or business, not the government or the people as a whole. This right is protected by the fifth and fourteenth Amendment. These Amendments prevent the government from being able to take away private property without public reason. If the land is needed, the government must pay a fair price for it. Individuals or businesses do not have to fear the government taking anything away without an important reason.
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Freedom of ChoiceIn a free market, everyone has the freedom of choice. Entrepreneurs are free to start businesses, companies are encouraged to innovate, and citizens can choose any career they want. Everyone involved in the market collectively determines what is produced, what is consumed, and what price it is sold for. Freedom of choice is the backbone of a free market economy.
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