The American “free enterprise” system

The American economy can be classified as a free enterprise system. This means that they value minimal government involvement in business and trade. Most businesses, incidentally, are owned privately and operate under only few government regulations.

Nevertheless, there are some important regulations. This kind of economic system is characterized by a pronounced sense of competition. With regard to the consumer, this usually means lower prices, since businesses are competing on the free market. They want consumers to spend their money with their business, which is only achievable through matching prices and deals their competitors offer. This competition can only be upheld through regulations that prevent monopolies, as far as government involvement is concerned. If one business were to monopolize a certain product, it would not be bound by competition and free to raise the price as high as it wished to.

Americans value the idea that everyone can succeed through hard work and the free market offers opportunity to anyone. Some people, however, deem it responsible for the ever-growing class disparity. It creates a sense of “every man for himself” and supports the idea that people are responsible for their own fortunes and misfortunes.

To conclude, as with most economic systems, there can be things said for and against it. While some people see their opportunities in it, some people might not find it to be working for their advantage.