ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention. The theory of laissez-faire was developed by the French Physiocrats during the 18th century. Laissez-faire advocates that economic success is inhibited when governments are involved in business and markets.

Detailed explanation-2: -Laissez faire is the doctrine that government generally should not interfere in the marketplace.

Detailed explanation-3: -Laissez-faire is a policy of minimum governmental interference in the economic affairs of individuals and society. The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The term laissez-faire means, in French, “allow to do.”

Detailed explanation-4: -Laissez-faire examples Based on laissez-faire policy, it allowed private businesses to make as much money as possible without intervention in the idea that this wealth would trickle down to individuals. Tax cuts: When governments cut taxes to stimulate the market, this is based on laissez-faire theory as well.

Detailed explanation-5: -We know Adam Smith today as the father of laissez faire ("to leave alone") economics. This is the idea that government should leave the economy alone and not interfere with the “natural course” of free markets and free trade.