The United States is considered to be a free enterprise economy because the government does not set prices or get involved in most economic decisions. What are some positives and negatives of this system?
Positives:
-The free enterprise system encourages competition, which can lead to lower prices and better quality products.
-It allows businesses to innovate and create new products and services.
-It encourages entrepreneurship and risk-taking, which can lead to economic growth.
-It allows individuals to pursue their own economic interests.
Negatives:
-The free enterprise system can lead to income inequality, as those with more resources have an advantage over those with fewer resources.
-It can lead to monopolies, which can stifle competition and lead to higher prices.
-It can lead to environmental degradation, as businesses may not be held accountable for their actions.
-It can lead to exploitation of workers, as businesses may not be held accountable for their labor practices.