Meaning of Laissez-Faire

Laissez-faire economics advocates for minimal government intervention in the marketplace

Origin and Influential Figures

Enlightenment and French Origins

The concept of laissez-faire emerged in France during the Enlightenment and was popularized by influential economists like Adam Smith and John Stuart Mill

American Adoption and Development

In the United States, laissez-faire principles were adopted in response to the perceived inefficiencies of government-subsidized enterprises, leading to a broader acceptance of these policies

Principles and Beliefs

Laissez-faire proponents believe that free markets lead to efficiency and prosperity, and that government intervention can disrupt the self-regulating nature of the economy

Gilded Age

The Gilded Age, marked by rapid industrialization and economic expansion, saw a hands-off approach from the federal government under laissez-faire capitalism

Progressive Era

The Progressive Era marked a departure from strict laissez-faire policies as societal issues became more pronounced, leading to significant reforms and a shift towards a more regulated economy

Roaring Twenties

The 1920s saw a resurgence of laissez-faire economics within the conservative movement, resulting in policies that favored business interests and ultimately culminating in the Great Depression

Economic Circumstances

The prominence of laissez-faire economics in American history has ebbed and flowed, often reflecting the nation's economic circumstances and public sentiment

Government Policy

Economic downturns and crises have historically led to calls for increased government intervention, while times of growth and stability tend to favor laissez-faire policies and limited government