INDUSTRIAL REVOLUTION
INDUSTRIAL REVOLUTION AND ITS IMPACT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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heavy taxation of manufacturers
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strict government control of the economy
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minimal government involvement in the economy
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government investments in major industries
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Detailed explanation-1: -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-2: -So then, while Smith was sympathetic to laissez-faire proponents, he was not totally committed to laissez-faire economics. He was not as rigid nor as minimalistic as laissez-faire economists advocate. He did not see laissez-faire principles as absolutes.
Detailed explanation-3: -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-4: -Smith saw laissez-faire as a moral program and the market its instrument to ensure men the rights of natural law. By extension, free markets become a reflection of the natural system of liberty.
Detailed explanation-5: -Pillars of capitalism In free markets, also called laissez-faire economies, markets operate with little or no regulation.