Free Enterprise
Categories: Entrepreneur, Econ
Regrettably, the term “free enterprise” has nothing to do with Star Trek. Let’s all take a moment to embrace our disappointment before moving on.
Ready? Okay. A free enterprise system is basically an economic system that is guided primarily by the laws of supply and demand. Terms that are often seen hanging out with “free enterprise” on the playground include capitalism, free market, private ownership, and market competition. Terms that typically don’t chill with the free enterprise gang include fixed distribution and state-controlled production.
The United States economy is largely a free enterprise system. When the supply of a thing goes up, its price tends to go down. When demand for a thing goes up, so does its price. Supply…and demand. This isn’t to say that free enterprise systems don’t have any regulations or government intervention going on, but it tends to be minimal and decentralized.