Last modified on June 25, 2018, at 16:24

Laissez faire

Laissez faire (let us do or let us work) (from "laissez faire, laissez passer") is an economic doctrine that opposes governmental regulation of commerce beyond the minimum necessary for a free-enterprise system; it was promoted by the physiocrats. [1] In economic theory, the term implies a true free market with no government intervention. Modern press approximately translates laissez faire into, "Do what you will", from French. The term was popularized by French Jean-Claude Marie Vincent de Gournay (1712–1759).

A noted advocate of the laissez faire style of economy was Adam Smith, who pioneered the theory of modern capitalism, as Thomas Malthus and David Ricardo.

Adam Smith's The Wealth of Nations (1776) described laissez-faire economics in terms of an "invisible hand" that would provide for the maximum good for all, if businessmen were free to pursue profitable opportunities as they saw them. Ibidem

In the US is a general principle of non-interventionism on the part of federal government, allowing states to handle matters at their level. Although elements of the laissez-faire principle are incorporated into all capitalist economies, it is always limited to some extent. Currently Somalia is the only nation where pure laissez-faire is practiced. Pure laissez-faire was experimented with in Chile during the reign of General Pinochet, but the experiment was unsuccessful.

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