Why does laissez faire theory reduces corruption?

Answer 1

Laissez-faire theory reduces corruption by promoting a free-market economy where minimal government intervention limits opportunities for bribery and favoritism. In an environment where businesses operate independently, the reliance on transparent market mechanisms discourages corrupt practices that thrive in heavily regulated systems. Additionally, competition fosters accountability, as companies are incentivized to maintain integrity to attract consumers and investors. Ultimately, the emphasis on self-regulation and market forces helps create a culture where corruption is less likely to flourish.