answersLogoWhite
English Language
Definitions
Laissez-Faire Economics

What is the definition of laissez faire?

148149150

Top Answer
User Avatar
Wiki User
Answered 2018-03-30 03:07:52

Answer 1

The phrase laissez-faire is French and literally means "let [them] do," but it broadly implies "let it be," "let them do as they will," or "leave it alone."

Origins of "Laissez-Faire"

The earliest recorded use of the term "Laissez-faire" in the context of government may have been by French ministers René de Voyer and Marquis d'Argenson, in 1736:

Laissez faire, telle devrait être la devise de toute puissance publique, depuis que le monde est civilisé . . . Détestable principe que celui de ne vouloir grandir que par l'abaissement de nos voisins! Il n'y a que la méchanceté et la malignité du coeur de satisfaites dans ce principe, et l'intérêt y est opposé. Laissez faire, morbleu! Laissez faire!!

Unofficial Translation: Laissez faire, this should be the motto of all public authorities, for as long as the world has been civilized. . . It is a detestable principle that there are those who only want strengthen themselves by the weakening the position of our neighbors! Only the wickedness and malice of the heart are satisfied by this principle, and interest is opposed to it. Laissez-faire, damn it! laissez-faire.

Economic Theory

In Economics and government, laissez-faire is usually defined as a form of capitalist economic system where government intervention is minimized. In such a system, the government still has an important role to play: it provides a stable, reliable currency for use by all, and it maintains mechanisms for the enforcement of contract law. Fraud and similar concepts are still illegal, and governments are still seen as proper and necessary.

Individual rights are irrelevant, as laissez-faire is not concerned with any concept of individuality - rather, it is concerned with trade. In such a view, any contract entered into willingly is binding on all parties. It is the government's role to ensure that a contract is valid, and that neither party attempts to cheat their way out of it. Technically, Adam Smith's "Invisible Hand of the Marketplace" is a different concept than laissez-faire; the former is a theoretical concept central to the theory of capitalism (primarily involved with the proper setting of prices), while the later is merely a form (i.e. implementation) of capitalism.

The two are easily confused, as laissez-faire can be seen as the closest to a "pure" implementation of the theory of Capitalism as practical.

Criticism of Laissez-Faire

One of the major problems with a laissez-faire system is that it does not take into account serious imbalances in power when negotiating contracts; as such, it tends to be a system often advocated by those already with a large amount of wealth or power, as a laissez-faire system inherently favors those - both in their ability to retain their wealth/power, and the ability to leverage such wealth/power to gain more. This is the primary reason why laissez-faire trade is generally frowned upon - while it may be an economic system where there is low (if any) government intervention or coercion, it is one where there is an very high level of private (primarily corporate) coercion. To provide a simple example, monopolies and cartels are commonplace (and, realistically, encouraged) under laissez-faire, despite the practical evidence that demonstrates unregulated monopolies are universally bad for a society.

This is not to say that laissez-faire does not have interesting and valuable concepts - however, slavish worship of anyeconomic theory is a bad idea, and laissez-faire has just as serious problems with practical implementation as does theories such as Marxism.

Answer 2

Laissez faire is a policy of letting things take their own course without interfering.

Answer 3

Laissez-faire is the theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs. It is pretty much, in other words, the economic policy in which government keeps its hands off the economy (laissez-faire literally means "hands off").

Answer 4

Laissez faire is a policy, in which things are let to take their own course, without interfering.
Laissez-faire means letting things happen naturally without interfering. It is typically used in a political or economic context.

001
🙏
0
🤨
0
😮
0
😂
0

Your Answer

Related Questions


Laissez faire was not developed from the Communist Manifesto, There was no Laissez Faire when the manifesto was around.


The government's policy concerning religion has a laissez faire quality.His laissez-faire attitude shows how little he cares about life.The laissez faire policies of Coolidge and the Republicans are often blamed for the Great Depression.The mayor seemed to take a laissez faire attitude toward the casinos in his town.


Laissez-faire is French for “let happen” not to control, but keeping hands off.



He was a strong supporter of laissez faire economics


how does the laissez faire work alone side the new eyfs


Oklawaha County Laissez-Faire was created in 1996.


The term laissez faire refers to letting the market be, and can also be called "let it be economics. "A laissez faire system would be in effect with little government intervention in business affairs.


The economic policy of laissez-faire is minimum intervention by governmental bodies into commercial and business affairs.Laissez-faire could be described as everything will work it self out if you leave it alone.


Laissez- faire was proposed by Adam Smith in his book The Wealth of Nations.


Yes, laissez-faire is a French word made up of the two verbs 'laisser' (to let, to tolerate, to accept) and faire (to do)


which company use laissez-faire style leadership?


There was no laissez faire during the Communist Manifesto. All businesses were government operated.


No. The party that espouse a classical laissez faire is the Libertarian party.


it's a hands off family because laissez faire is french for hands off


Laissez-Faire - 2010 was released on: USA: February 2010


The cast of Laissez faire - 2007 includes: Maura Sajeva


Laissez-faire economics IS an economic system. However, it is a subset of wider capitalism.


The government takes a "hands off" approach to businesses


little government intervention


A laissez-faire leader is a leader who advocates free market economics with as little government intervention as possible.


laissez-faire has no control by the government, while mercantilism is an economy controlled by the government


Laissez Faire economics was a statement of a "hands off" agreement between the government of citizens. Laissez Faire basically means hands off. Adam Smith was an advocate of this idea.


Laissez-faire economics helped the country industrialize. Supporters of Laissez-faire believe that government should not interfere in the economy other than protect property rights and maintain peace.


laissez-faire means: doing nothing, not to oppose.More infos about French expressions and idioms:http://french-expressions.com



Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.