There is a tradition of free enterprise in the United States—a tradition that encourages people to try out their business ideas and compete in the public market. Both Mr. Scappoose, the immigrant who opened a barber shop, and Bill Gates, the young man who founded Microsoft, are part of this tradition, and both are entrepeneurs with a desire to succeed and profit.
In the free enterprise economy, consumers, acting on their own, decide to buy products. Their individual choices signal the producers what to produce and how much to make. The result is a variety of products at reasonable prices. We expect government to protect consumers by assuring that they have the information they need to make informed decisions.
Government laws, such as those protecting the right to private property and enforcing contracts, help Americans benefit from free enterprise. The Constitution also specifies how government can tax, and it prohibits government from interfering in business contracts. Finally, federal and state agencies regulate industries whose goods and services affect the wellbeing of the public.
