The Supreme Court justices' endorsement of laissez-faire capitalism in the late nineteenth and early twentieth centuries was significant because it prevented Congress from regulating any economic activity that occurred within a state.
<h3><u>What is laissez-faire capitalism ?</u></h3>
Laissez-faire is a free-market, capitalist economic theory that rejects government interference.
The French Physiocrats, who lived in the 18th century, created the laissez-faire ideology.
According to proponents of laissez-faire, government involvement in industry and markets hinders economic progress.
The principles of laissez-faire were later expanded upon by free-market economists as a means of achieving economic development, despite criticism that it encouraged inequality.
Critics contend that some level of government control and participation is necessary for markets.
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