Explain The Economic Policy Of Laissez Faire

Explain the economic policy of laissez-faire.

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Laissez-Faire is an economic policy that says governments should not interfere with the free market; let the market develop on its own.  This means that the government can not control restrictions, taxes, or businesses.  It essentially means that the economy should be left alone for people to do as they please.

Advocates for laissez-faire argue that individual self-interest and competition should dictate what happens to the market, while those against laissez-faire argue that government taxation and regulation are necessary to protecting the market.

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This is a policy in which industry and economics are free from government restrictions, tarriffs and especially any government monopoly. It is a French term which roughly translated is 'allowing the people do as they please.'

It is a vision of free market and free trade without government intervention, keeping the government involvement to a minimum. Laissez faire in theory does not wish to protect multi-national companies at the expense of the people but it would look to allow the market to take its own course.

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