What is the guiding economic philosophy of the free enterprise system?

The guiding economic philosophy of the free enterprise system is often referred to as capitalism. Capitalism is an economic system where the means of production and distribution are privately owned, and decisions regarding investment, production, and distribution are based on market principles of supply and demand. The key features of the free enterprise system include:

1. Private Property: Individuals and businesses have the right to own and control property, including resources, capital, and goods.

2. Profit Motive: The pursuit of profit is a fundamental incentive driving economic activity. Businesses aim to maximize profits to ensure their sustainability and growth.

3. Competition: The presence of multiple buyers and sellers in the marketplace fosters competition, which is believed to lead to efficiency, innovation, and improved products and services.

4. Limited Government Intervention: The government's role is generally limited to enforcing contracts, protecting property rights, and ensuring fair competition. The free enterprise system emphasizes minimal government interference in the economy.

5. Consumer Sovereignty: Consumers have the freedom to make choices in the marketplace, influencing what goods and services are produced based on their preferences and demand.

The free enterprise system is associated with classical liberal economic thought and has been a dominant economic philosophy in many capitalist societies.