Dad, you're a businessman. How does the U.S. economy work?
That's easy to explain. The economy has four basic principles in which everything is based upon.
The first principle is private property. Everyone has personal control over their own valuable items. For example, the company that owns this public restaurant has control of when it is open or closed.
What's the first principle?
That makes sense. What's the second?
The next one is freedom of choice. Everyone can make their own economic decisions. When you own a car, you alone can decide if you want to use or sell it, and no one else shares responsibility for your choice.
The third value is profit. Businesses exist from producing goods and services to earn more money than they spent in production. This is to satisfy consumers' wants, develop new services, and maintain a strong economy. The company that built this house received more money from our payment than what they paid to gain the needed materials.
Interesting, what's the third value?
That would be competition. Rivaling businesses are individually encouraged to improve their own quality, maintain good prices, and develop new products. Rivaling car companies, for example, compete to attract more customers and stay in good standings.