Laissez- faire; what does this term convey?
Laissez-faire is French for “leave alone”.
It is one of the guiding principles of a free economy. It is an economic theory which opposes any kind of government interference in the economic and business affairs of individuals and society.
It believes that economic and business affairs should be driven by market forces. The government typically interferes through restrictions on imports and exports, regulations, tariffs, taxes , subsidies, etc.
The notion behind this theory was that as there will be no government intervention, so, there will be low taxes and strong competition between individuals and this will benefit everyone. In the 19th century, this theory became very popular in the US. But by mid-19th century, cracks became evident in this theory like uneven distribution of wealth, poor treatment of workers, spread of monopolies, etc. This theory faded out after the 1929 stock market crash and the Great Depression in the 1930s.
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6 Comments. Leave new
Too short..
Good effort..!
The world is likely to Perform and grow better in the absence of Laissez Faire.
Good effort.. But could’ve explained more..
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expecially the intro 😀
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good job! interesting work