How was laissez-faire approach to economics different from President Franklin Roosevelt's approach?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The laissez faire approach to economics is very different from the economic policies of President Franklin Roosevelt. 

In the laissez faire approach, the government does not regulate the economy.  It does not do things to try to make the economy stronger.  It just let businesses do what they want and trusts that all will be well. 

President Roosevelt’s New Deal was very different from this.  Instead of leaving the economy alone, the government got involved in practically every aspect of the economy.  It did everything from paying farmers not to grow so many crops to insuring bank deposits.  Because it involved the government in the economy in so many ways, President Roosevelt’s approach was very different from the laissez faire approach.

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