Ok so I am doing my homework and I am really confused about this question. I am not trying to just have you guys do it for me but I really need help. If you could give me the answer that would be great but I would love a hint or something like that to help me. Ok so here it is:
Why do you think free enterprise and capitalism usually develop as economic systems under democracy?
Study these definitions.
http://dictionary.reference.com/browse/democracy
http://www.investopedia.com/terms/f/free_enterprise.asp
http://www.investopedia.com/terms/c/capitalism.asp
What do you think?
Um I think that Capitalism and Free Enterprise are under democracy because of the private ownership and freedom?
Is that right Mrs. Sue?
Yes. People in a democracy are free to be entrepreneurs and own their own businesses.
Thankyou!
Sure, I'd be happy to help you understand the question and provide some guidance.
To tackle this question, it's essential to break it down into its various components. Let's start by understanding the concepts of free enterprise, capitalism, and democracy.
Free enterprise refers to an economic system where individuals and businesses have the freedom to own, operate, and control their economic activities. It emphasizes private ownership, competition, and voluntary exchange.
Capitalism, on the other hand, is an economic system characterized by private ownership of resources and the means of production. It operates on the principles of supply and demand, with prices determined by market forces.
Democracy refers to a political system where power is vested in the people, who have the ability to elect their representatives and participate in decision-making processes.
Now, let's analyze why free enterprise and capitalism usually develop as economic systems under democracy.
Hint: Think about the key elements of democracy that align with free enterprise and capitalism.
In a democratic society, individuals enjoy certain fundamental rights, including the right to private property and freedom of choice. These rights align with the principles of free enterprise and capitalism, as they emphasize individual freedom and economic decision-making.
Democracy promotes the idea of competition and level playing fields, as political power is distributed among various entities through elections. This focus on competition resonates with the free market principles of capitalism, where multiple businesses strive to provide goods and services to consumers.
Moreover, democracy provides a legal and regulatory framework that protects property rights and enforces contracts. This stability and rule of law are crucial for entrepreneurial activity and investment in the market economy.
In summary, free enterprise and capitalism generally develop under democracy because of the alignment between the principles of individual freedom, competition, property rights, and the legal framework provided by democratic systems.
Now that you have a better understanding of the question and the concepts involved, try to formulate your response based on the provided hints and explanations. Remember, it's essential to express your own thoughts and insights while answering a question.