The Impact Of Property Ownership On The American Economy

The concept of property ownership and the legal protection necessary to safeguard one’s property is a basic keystone of the American economy and some might say the American dream. Economic performance and progress is promoted through a system of well-defined secure private property rights which prevent encroachment on another’s property or seizure or something that is not theirs. Societal cooperation emerges and a nation evolves into a commercial economy when there are laws to protect private property and the benefits of ownership associated with possessing or transferring their property. Property rights and prosperity are inextricably connected because without protection, consumers would not be anxious to purchase homes, automobiles or

Some will choose not to continue working if their income profits are too small after taxes are paid. Taxpayers save less and begin to make financial decisions based on tax considerations/savings rather than economic advantages. Economic growth potential will slow down because companies will have to cut corners and produce fewer low-demand products to meet the tax burden. Some companies may decide to relocate their businesses out of the country to avoid the taxes and some will be forced to make job

Consumers determine how much they will buy of a product at a given price based on their desire for it. As the price declines, (all else being equal) more of a product will be purchased. In turn, manufacturers will decide the quantity and prices they are willing to supply. Generally, if people are willing to pay more for a product, then additional manufacturers will want to make the product and increase production capacity. Higher anticipated prices will lead to an increase in the supply of goods. This dynamic interaction results in an equilibrium market price; when buyers and sellers can freely interact, the resulting price causes the quantity demanded to exactly equal the supply produced by sellers. Price controls on a competitive, well-functioning market hurts consumers by reducing the amount of economic trade while creating incentives to waste resources. In the long run, price controls reduce entry and investment. Price controls attempting to lower the price will decrease earned profits resulting in a decrease in investments and a decline in economic growth. If price controls establish price floors (like minimum wages0, higher unemployment rates could result also negatively impacting economic