A government is laissez-faire when it does not interfere with business affairs and does not regulate its actions
Further Explanation
Laissez-faire is an economic theory that resists any form of government interference in business affairs. It uses the principle that the less involvement of the government in the economy the more successful it can become, leading to the success of society as a whole. Free market capitalism is based on this Laissez-faire philosophy.
The following are the common types of legislation Laissez-faire economists oppose:
• minimum wages
• duties
• trade restrictions
• corporate taxes
Effects of Laissez-faire in the society
While Laissez-faire was implemented in the late 18th and early 19th century it was also noticed that it resulted in large gaps between the wealthy and the poor, unsafe working conditions for the workers and starvation.
Government Intervention
In the beginning of the 20th century significant government controls and regulations were implemented with the goal of protecting workers from unsafe working conditions and to protect consumers from unfair trading practices.
Criticism of Laissez-Faire
Critics of Laissez-faire targeted the moral ambiguities that is attached to capitalism as a system, to which, it does not inherently protect the lowest in the society. As an argument, advocates believe that when individuals pursue their interest first, the benefits will follow. However, for the detractors, Laissez-fair only leads to economic imbalances and poverty.
Learn more
- Economic system brainly.com/question/8848735
- Capitalism brainly.com/question/974812
Keywords: laissez-faire, economics, government
