How has laissez faire affected economy in US?

Answer 1

The government takes a "hands off" approach to businesses

Answer 2

Some would say that this attitude is what brought the U.S., and indeed, the entire world to this current economic crises. As we ate cake, Rome was burning . . . . so to speak.

Whilst everyone was buying their third house, remortgaging, taking out second and third mortgages, flipping houses, setting up credit lines and investing in real estate and the Stock Market, the bubble was growing. Simultaneously, the "Derivative Market," thanks in large part to the Real Estate Market, exploded, selling the same crap over-and-over, ad nauseum, until apparently, worldwide, the Derivatives Market sold three or four times the entire worlds GDP.

Yes, we ate cake! Rome has burned!

Our stomachs now ache and we're hungover from the lust and greed of "things" most of us didn't need, yet most of us so earnestly sought . . . . . Ironically, all this happened not only at the insistence of our Political Leaders, but with their help. You see, most, if not all of what happened would not have been possible were it not for their Legislation, change of Legislation or lack of Legislation. They weren't complicit, they are responsible. Whilst Rome was burning, they got Marshmallow's for roasting and did nothing . . . . but wait for the inevitable. Traitors!

And now we have a laissez-faire attitude about what our political leaders did to us and the entire world economy.

Answer 3

Laizzez-faire did help the economy. The word literally means leave it alone, let them do as they will, or let it be.