Final answer:
The key relationship between democracy and free enterprise is that both are based on the concept of individual freedom, where democracy allows for self-governance and free enterprise relies on economic freedom with minimal government interference.
Step-by-step explanation:
The key relationship between democracy and free enterprise lies in their shared foundation on the concept of individual freedom. Democracy is a political system where people have the power to govern themselves, often characterized by free and fair elections where citizens have the right to vote. Capitalism, also known as a free enterprise or free market system, is an economic system where individuals own the factors of production and make economic decisions based on self-interest, with minimal government interference.
This relationship highlights how both systems encourage individuals to act freely, make choices, and pursue their interests. The success of free enterprise often depends on the political system it operates within; hence, it flourishes in democracies where individuals can exert some influence on government policies to maintain their economic liberties.
The U.S. government promotes the goals of the free enterprise system by ensuring that the market remains competitive and that there is a space for voluntary exchange, creating an environment that can lead to wealth creation.
Finally, the balance of order and freedom is key in that while democracy seeks to safeguard individual freedoms, it also aims to maintain societal order. This balance is fundamental to the functioning of both democracy and capitalism, a relationship that is rooted in the ideal of liberty, as developed in the philosophical works of John Locke and as realized in the history and development of the United States.