What was one outcome of laissez-faire economic policy?

Answer 1

Some of the outcomes of laissez-faire Economics were:

• Businesses pay workers low
• Pollution of air and water
• Poverty traps that cannot be escaped through free choice
• General glut that results from overproduction or underconsumption
• Monopoly power that emerges naturally in the market and allows businesses to exploit consumers
• Exploitation of the working class that pushes wages down to subsistence and compels laborers to work in harsh and unsafe conditions
• External economies that generate situations where desirable goods are underproduced on the market, and undesirable goods are overproduced on the market
• Public goods that are not supplied by the market due to free-rider problems