<u>Effects of laissez-faire capitalism:</u>
- Laissez-faire capitalism allows companies to compete freely with each other in an open marketplace.
- Without costs of government regulation, businesses can grow faster.
- This leads to price increases for the consumer and the lack of diversification in the marketplace.
- Without restrictions from the government, there is more incentive for innovation, and technological advances can take place.
- This can result in a large wealth gap in a society with a few very rich people in control of the majority of the economy's wealth.
- Capitalism (or laissez faire) feeds and clothes and houses more people at higher levels than any other system.
- Workers have more rights, and have a comfortable work environment.
- Lots of government involvement and regulation raises cost and slows growth.
On<span> November 10, 1958, Soviet Premier Nikita Khrushchev delivered a speech This ultimatum sparked a three year </span>crisis<span> over the future of the city of </span>Berlin <span>that culminated in </span>1961<span> with the building of the </span>Berlin Wall<span>.</span>
