laissez faire Capitalism Economics - Summary, Facts, History

 Research Topics Presentation Tips History Essays laissez faire adam smith definition 

Laissez Faire is a French term meaning 'Let to do'. Adam Smith wrote the Laissez Faire should be applied to economics on the basis that individual interests would benefit the whole economy. Smith said as if an invisuable hand was in charge of the economy. It is like Reagonomics Trickle down effect. Government should not interfere with the economy. Individual self interests would keep the economy going. If an individual does well, then prosperity will spread in the form of jobs and purchasing power. This is basically how the modern day economy has worked for many years without the need for stimulus. The economy usually corrects itself.

Key Points of Adam Smith's lasissez-faire economics

  • Wealth of Nations is the Classic expression of lasissez-faire economics*.
  • Strongly opposed to any governmental intervention in economic affairs
  • Believe in allowing individuals to pursue their own interests without competition from state-owned enterprises or legal restraints.
  • Believed in economic growth
  • Free competition

 

laissez faire adam smith definition