WORLD HISTORY

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: -The term ‘laissez-faire’ translates to ‘leave alone’ when it comes to economic intervention. This means no taxes, regulations, or tariffs. Instead, the market should be completely free to be led by the natural laws of supply and demand.

Detailed explanation-3: -Laissez faire works best for economic growth because it provides individuals with the greatest incentive to create wealth. Under laissez-faire capitalism, you cannot wrap a robe around you, put a crown on your head, and demand that people give you money.

Detailed explanation-4: -Le Gendre from when he responded to a Mercantilist minister, Jean-Baptiste Colbert. The laissez-faire theory mainly advocates government non-intervention. Economic theorist Adam Smith believed that the optimal functioning of markets needed minimal government intervention.

Detailed explanation-5: -Laissez-Faire refers to an economic doctrine advocating minimum or no interference from the government in business and economic affairs. It views state intervention as a barrier to the growth and development of an economy. In short, it encourages free-market capitalism based on supply and demand.

Detailed explanation-6: -The theory suggests that an economy is strongest when the government stays out of the economy entirely, letting market forces behave naturally. In laissez-faire policy, the government’s role is to protect the rights of the individual, rather than regulating business in any way.