America points to its free enterprise system as a model for other nations. The country's economic success seems to validate the view that the economy operates best when government leaves businesses and individuals to succeed -- or fail -- on their own merits in open, competitive markets. But exactly how "free" is business in America's free enterprise system? The answer is, "not completely." A complex web of government regulations shape many aspects of business operations. Every year, the government produces thousands of pages of new regulations, often spelling out in painstaking detail exactly what businesses can and cannot do. ost people have unlimited wants, but everybody has a limited amount of money. A producer cannot decide what to produce simply on the basis of what people want; he or …show more content…
Although people in that country might want those cars, most of them would not have the money to buy them. Moreover, the few people who could afford such cars might prefer to spend their money on something else. Producers, therefore, have to take into account not only whether consumers will want their product, but also whether potential consumers will be able and willing to pay for it. The desire for a product, plus the ability and willingness to pay for it, is called the demand for that product. The main motivator is the potential to earn a profit. People also go into business for personal reasons, such as the desire for independence and the drive to be creative. Others have no intention of starting a business. If they choose, they can offer their labor, another economic resource, for wages and salaries. The key to free enterprise is that all these people, whether they start a business of their own or work for someone else, do so voluntarily. By allowing people to pursue their own interests, a free enterprise system can produce phenomenal results. In a free enterprise system, households—not the government—own most of the country’s economic resources and decide how to use