How did laissez faire end?

Answer 1

Laissez-faire economics began to wane in the late 19th and early 20th centuries due to the rise of industrialization, which led to significant social and economic challenges such as monopolies, labor exploitation, and economic inequality. The Great Depression of the 1930s further discredited laissez-faire principles, as it became clear that unregulated markets could lead to severe economic crises. In response, governments increasingly intervened in the economy through regulations, social welfare programs, and monetary policies, marking a shift toward more mixed economic systems. This transformation laid the groundwork for modern economic theories that advocate for a balance between free markets and government intervention.