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Show I : : It's YmiF business! The American system of enterprise enter-prise is readily - comprehended . when met first hand. As in a factory an umbrella factory, for example: It has one workman, Joe, who makes one umbrella in an hour and receives ?1 for his work. The manager takes the umbrella to the market. He must sell it for $1 in order to pay Joe. With difficulty, because of the high price, he sells the umbrella, returns and pays the dollar to Joe. There is nothing left for Capital. What are the reactions at the end of the first day? Market is dissatisfied. It says the price is too high. Joe is dissatisfied. dissat-isfied. He wants a raise. Capital is dissatisfied. It hasn't had a return. re-turn. Management is on the spot because be-cause it must satisfy all three groups so it decides to invest money in better production methods. meth-ods. It gets additional capital, installs in-stalls a stool for Joe to sit on, a conveyor to bring materials to him, electric power to operate his machine. When Joe comes to work he is. amazed to find that he can make two umbrellas with no more effort than it took to make one the day before. Management says, "Joe, I think we have discovered how wealth is produced'; Management takes ium-i brellas to market, meets the demand de-mand for lower prices by selling them for 75 cents each. The customer is happier because be-cause he has had a 25 percent saving. sav-ing. Management turns to Joe and says, "We have $1.50 today where we only had ?1 yesterday. I can give you a raise and pay you $1.25 an hour." Joe is happy because his demand has been satisfied. Then management reports to Capital that 25 cents remains from which a dividend may be paid. All three demands, apparently appar-ently without exception, have been met. That is free enterprise at work. |