USA HISTORY

Detailed explanation-1: -A laissez-faire economy gives businesses more space and autonomy from government rules and regulations that would make business activities harder and more difficult to proceed. Such an environment makes it more viable for companies to take risks and invest in the economy.

Detailed explanation-2: -Laissez-faire government policies helped the growth of American businesses by not putting regulations on them that would hamper their productivity and profitability.

Detailed explanation-3: -The driving principle behind laissez-faire, a French term that translates to “leave alone” (literally, “let you do"), is that the less the government is involved in the economy, the better off business will be, and by extension, society as a whole. Laissez-faire economics is a key part of free-market capitalism.

Detailed explanation-4: -Laissez-faire economics fostered an amicable relationship between businesses and government and allowed businesses to grow to enormous sizes. Unfortunately, it also allowed businesses to structure themselves in ways that favored the employer’s profits over the working conditions and wages of the workers.

Detailed explanation-5: -Proponents of laissez-faire were especially concerned with “liberty of contract, ” or the rights of businesses and workers to agree to a labor contract under any terms. The Supreme Court adopted this reasoning to overturn state laws that instituted minimum wages, maximum working hours, or safe working conditions.