laissez-faire

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Related to Laissez-faire capitalism: laisser faire

Laissez-Faire

A term describing an economic theory that promotes government non-intervention. Laissez-faire theory states that most government interventions make an economy less efficient and hamper growth. According to this, government ought to restrict itself to safeguarding the right to private property. In its extreme form, it is opposed to any law limiting economic activities short of theft or extortion. Laissez-faire economists are philosophically opposed to minimum wages, protectionism, antitrust laws, and most laws intended to benefit workers at the expense of employers. Proponents of laissez-faire economics argue that it benefits employers and workers alike. For example, a man may open a mechanic shop to make money for himself, but, in the process of doing so, he may hire otherwise unemployed mechanics and service otherwise broken cars, which then facilitates business for the rest of the community. If there were environmental or wage restrictions on his business, however, he might not hire as many employees and may not start the mechanic shop at all. Critics of the theory contend that its benefits are overstated and that a laissez-faire structure without regulation lends itself to the creation of bubbles, which harms both businesses and their employees. See also: Reaganomics, Invisible Hand, Keynesian economics, Marxism, Regulation.

laissez-faire

Of, relating to, or being an economy devoid of government interference.

laissez-faire

an economic doctrine that emphasizes the superiority of‘free’ markets (see PRICE SYSTEM) over state regulation of individual markets and of the economy in general. Proponents of laissez-faire argue that a PRIVATE-ENTERPRISE ECONOMY will achieve a more efficient allocation and use of scarce economic resources and greater economic growth than will a CENTRALLY PLANNED ECONOMY where the government owns and directs the use of resources. This inference is based on the rationale that private ownership of resources and maximum freedom to deploy these resources in line with profit signals will create strong incentives to work hard and take risks. State bureaucracies, on the other hand, can tend to stifle enterprise and initiative. See CLASSICAL ECONOMICS, RATIONALIZATION, PRIVATIZATION.
References in periodicals archive ?
Nothing in this statement is contrary to laissez-faire capitalism.
However, she thought that were we committed to facing reality and coping with it by 100 percent dedication to "reason" and 100 percent rejection of mysticism, this would inexorably imply a society dedicated to rational selfishness, the supremacy of individual rights, and prosperous laissez-faire capitalism.
As a historian of the West (author of Dust Bowl), he understands better than most how land has been defiled wherever laissez-faire capitalism was unleashed.
To be embedded in pure laissez-faire capitalism, to operate selfishly in one's own best interest, was Rand's utopia.
The only rational alternative to this ruinous condition, Dahlen argues, is laissez-faire capitalism, implemented in every sector of the economy, and the elimination of economic controls at every level of government.
Although government action is needed against terrorists, Bernstein sees laissez-faire capitalism as the answer to environmentalists.
While laissez-faire capitalism is a distinct ideology typically associated with right-wing politics, conspiracist ideation tends to proliferate along the political fringes of both the far right and the radical left, where some conspiracy theories are embraced and others rejected.
The idealized model of this system, best approximated in the early-nineteenth-century United States, has been described with the terms free-market capitalism (Rothbard 2006, 301) and laissez-faire capitalism (Skousen 2001, 46).
The laissez-faire capitalism that has brought about our staggering debt which will have to be paid off by our children and their children, has had its day.
As a result, the average American leaves school generally believing that laissez-faire capitalism needs to be restrained and that a benevolent government is working to ensure that consumers, taxpayers, and small entrepreneurs are not being exploited by Big Business.
They characterize this history as "about the rise of laissez-faire capitalism and efforts to tame and redress its inequities.
Paterson was one of the earliest synthesizers of the mixture that defines the still-growing political-ideological movement and tendency known as libertarianism, combining, as Cox aptly sums it up, "a belief in absolute individual rights and minimal (not just limited) government; advocacy of laissez-faire capitalism and an individualist and 'subjective' approach to economic theory; and opposition to social planning, victimless crime legislation, and any form of 'class' or 'status' society.