laissez-faire


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Related to laissez-faire: laissez-faire economy, Laissez-Faire Leadership

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 ?
Composite reliability for latent variables for one index, such as Laissez-Faire equals with 1.
a]: There is a relationship between laissez-faire leadership style and organizational profitability.
The descriptive analysis based on employees' experience indicates that the less experienced employees have high mean on transformational leadership and the high experienced employees have high mean score on laissez-faire leadership style (Table 4).
We cannot afford laissez-faire attitudes when it comes to dealing with drug problems.
The laissez-faire attitude towards natural rubber by the major rubber consumers is not only an embarrassment, it's to the detriment of the whole industry.
Dommel, formerly France's Chief Inspector of Finance, attacked the laissez-faire approach to corruption which regarded it as a necessary fact of economic life in certain cultures.
It is an ideology that evolved over the past twenty years or so that is a conjunction of neo-conservative politics, laissez-faire free market economic values, and technological determinism.
They dance this piece with a playful, laissez-faire quality: after several difficult phrases, the dancer simply stops and walks off.
If the purpose is to enhance and empower group process and development, a laissez-faire or consensus style of leadership might be most appropriate.
At the same time, laissez-faire economics has returned to center stage.
Common to every conservative complaint is the nostalgia for laissez-faire days when U.
global military and economic predominance and the ideologies of internationalism and laissez-faire economics.