One of the main challenges that countries are faced with is what kind of economy their country should operate by. After weighing the pros and cons, the fathers of America decided to go with a slightly modified form of a Free-Market system. At the time, the market system was a new theory created by a Scottish economist by the name of Alex Smith. This innovative theory was a huge contrast to the generally accepted command economy (in which the government had ultimate control of the economy).
Smith's economy was based on the economy's ability to correct itself and encourage competition. For instance, a recession strips away bad assets, whether in the form of a poorly designed security or a badly managed business. Those remaining should be strong enough to rebuild the market. So basically it is a "survival of the fittest" system. With the economy being self-sufficient, it means that there is no need for government regulation. As a matter of fact, that is the whole point of a market system. This is beneficial to business owners because their success is instantly rewarded. They do not have to give up revenue because of government regulation and hefty taxes. Business owners also receive ultimate freedom in decision making. For instance, they have the freedom to outsource if they see fit. They can do whatever they can do gain the most profit for themselves. .
The free-market system has benefits for the employee as well as the everyday consumer. For the employee, there is incentive to work hard and perform to your maximum capability. Similar to the business owner, there is more room to make more income. Employees also receive self-satisfaction from hard work and getting rewarded for it. For the consumer, all of these businesses are competing for your penny. With a highly competitive economy, along with minimal government intervention, they can get products to you as cheap as possible. Everybody likes cheap goods!.
