laissez-faire


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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 ?
Laissez-faire leadership style would be negatively correlated with innovative work behavior.
Transformational, transactional, and laissez-faire leadership styles comprised the independent variables that influenced the outcome of the dependent variables of small business profitability and organizational success.
It was observed that the highly experienced employees have high mean scores on laissez-faire leadership.
Professor Kasper addresses the question as to whether the revival of a laissez-faire program was the consequence of external, social problems--the inflation and stagnation of the 1960s and 1970s; internal theoretical developments, including the creation of new analytic techniques; or a response to an ideological predisposition toward a non-interventionist laissez-faire agenda.
First, reform liberals reject the laissez-faire premise that the market tends "naturally," that is, in the absence of the distortions introduced by governments, toward equilibrium and harmony.
Central to his research is the Multifactor Leadership Questionnaire (MLQ), developed to measure the transformational, transactional and laissez-faire leadership concepts described above.
La doctrina del laissez-faire capitalista sostiene que se sirve mejor al bien comun mediante la busqueda desinhibida del interes personal.
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.
5) These critics have portrayed the Justices in the Lochner majority as being motivated by their own policy preferences favoring laissez-faire economics and social Darwinism.