laissez faire Capitalism Economics - Summary, Facts, History
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
- Strongly opposed to any governmental intervention in economic
- Believe in allowing individuals to pursue their own interests
without competition from state-owned enterprises or legal restraints.
- Believed in economic growth
- Free competition