Disadvantages of laissez-faire

Answer 1

The popular answer taught is this:

By having limited government interference corporations would become too large to compete with allowing competitors to have total control over supply and demand through production as well as price controls.

This is a shallow analysis that leads to an incorrect conclusion.

When one talks about laissez-faire, they often refer to the Gilded Age. This is first mistake they make. The Guilded Age was in fact not laissez-faire! There was much active government help to companies. The government in fact helped to create many of the monopolies that we associate with the period. Refer to the link below for a more thorough answer.