What is Laissez-Faire?

The idea that people should be free to choose how to do things, without too much control from someone in authority.

If a government is laissez-faire, it does not have many laws and rules that control the buying and selling of goods and selling of goods and services.

Laissez-faire is an economic theory dating back to the 18th century that opposes any government intervention in business affairs. The driving principle behind laissez-faire economics is that the less the government is involved in the economy, the better off business, and society as a whole, will be.

It is a French term that translates to "leave alone," or more literally to "let you do."

Laissez-faire emphasizes minimal government intervention in business, promoting economic growth, innovation, and competition. However, it has drawbacks, including potential harm to consumers and the environment, wealth inequality, and the exploitation of resources. The lack of regulation can lead to negative externalities and incentivize bad actors to exploit loopholes, creating challenges in balancing economic freedom with social welfare.

References:

aissez-faire. (2025). In Merriam-Webster Dictionary. https://www.merriam-webster.com/dictionary/laissez-faire
Wikipedia contributors. (2025c, January 12). Laissez-faire. Wikipedia. https://en.wikipedia.org/wiki/Laissez-faire
Team, I. (2024, June 28). What is a Laissez-Faire economy, and how does it work? Investopedia. https://www.investopedia.com/terms/l/laissezfaire.asp

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