Have you ever heard of a free market economy? If you haven't, a free market economy is a type of economy where people decide what to buy and sell. The founding fathers tried to set up an economy based on Adams Smith's idea about a free market economy. They attempted this when they created the Articles of Confederation on November 15, 1777, however ratification of the Articles Of Confederation by all thirteen states did not occur until may 1, 1751. I think a free market economy is a great idea for this nation.
words people use in the free market
In a free market economy, there are such things:
- interest- a small payment that is added for borrowed money
- consumer-a person who buys things and services
- producer-a person who buys things and services
- demand-the amount of goods and services that people will want at all prices
The products that people make and sell have changed since the founding fathers of the United States. But consumers are still free to choose what they want to buy from producers. Supply and demand control how much things cost. If there were more apples in supply, the price might be lower, and if there were fewer apples in supply, the price might be higher.
Constitution and Money
There is also something else that is part of the free market economy which i the constitution and money. Alexander Hamilton was put in charge of the Department of Treasury. This department was given many different and important responsibilities within the constitution. These different responsibilities, found in Article 1 section 8 of the Constitution, helped the new government manage its money. One job of the Treasury is to make currency, or coin or bill used as money. Having the same currency for all the states is very important. I thought that they were very clever for making the whole country have its own currency.
Constitution and Trade
The Constitution and Trade is something in common with the Constitution. The Constitution gives the Treasury the responsibility of managing the money of the United States. Trade was very important to the new nation because o specialization. Specialization means a skill or knowledge in one job. Under the Articles, a state had the power to put a tariff, which is a type of tax, on goods from other states or countries. The Constitution also gives the government the ability to set tariffs for the international trade. Ships can carry many more goods now than they could in the past. The Constitution also gives the government the ability to set tariffs for international trade.
I really want to thank the founding fathers for this AMAZING idea, The Free Market Economy
