Question

c) Explain ONE way in which the adoption of laissez-faire economic policies led to an increase in the share of global manufacturing for states in Europe and North America.

Answer 1

Answer:

Laissez faire economics advocates for less government regulation and intervention. Extreme laissez faire views dislike all types of taxes and controls.  Of course something like that will never happen, but different economic policies favor certain laissez faire views.

For example, during the 1800s, many politicians believed that business owners were entitled to exploit their workers in order to make higher profits. As a result of these types of policies, 14 or 16 hour long labor days were common, no safety regulations existed, and the wages were not high. Since governments didn't regulate labor markets, businesses were able to benefit form this and increase total production.