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''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. As a system of thought, ''laissez-faire'' rests on the following axioms: "the individual is the basic unit in society, i.e. the standard of measurement in social calculus; the individual has a natural right to freedom; and the physical order of nature is a harmonious and self-regulating system." Another basic principle of ''laissez-faire'' holds that markets should naturally be competitive, a rule that the early advocates of ''laissez-faire'' always emphasized. With the aims of maximizing freedom by allowing markets to self-regulate, early advocates of ''laissez-faire'' proposed a ''impôt unique'', a tax on land rent (similar to Georgism) to replace all taxes that they saw as damaging welfare by penalizing production. Proponents of ''laissez-faire'' argue for a near complete separation of government from the economic sector. The phrase ''laissez-faire'' is part of a larger French phrase and literally translates to "let t/themdo", but in this context the phrase usually means to "let it be" and in expression "laid back." Although never practiced with full consistency, ''laissez-faire''
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
emerged in the mid-18th century and was further popularized by Adam Smith's book '' The Wealth of Nations''. While associated with
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
in common usage, there are also non-capitalist forms of ''laissez-faire'', including some forms of
market socialism Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy, or one that contains a mix of worker-owned, nationalized, and privately owned ...
.


Etymology and usage

The term ''laissez-faire'' likely originated in a meeting that took place around 1681 between powerful French
Controller-General of Finances The Controller-General or Comptroller-General of Finances (french: Contrôleur général des finances) was the name of the minister in charge of finances in France from 1661 to 1791. It replaced the former position of Superintendent of Finances ('' ...
Jean-Baptiste Colbert and a group of French businessmen headed by M. Le Gendre. When the eager
mercantilist Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduc ...
minister asked how the French state could be of service to the merchants and help promote their commerce, Le Gendre replied simply: "Laissez-nous faire" ("Leave it to us" or "Let us do t, the French verb not requiring an
object Object may refer to: General meanings * Object (philosophy), a thing, being, or concept ** Object (abstract), an object which does not exist at any particular time or place ** Physical object, an identifiable collection of matter * Goal, an ...
). The anecdote on the Colbert–Le Gendre meeting appeared in a 1751 article in the ''Journal économique'', written by French minister and champion of
free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...
René de Voyer, Marquis d'Argenson—also the first known appearance of the term in print. Argenson himself had used the phrase earlier (1736) in his own diaries in a famous outburst: Vincent de Gournay, a French
Physiocrat Physiocracy (; from the Greek for "government of nature") is an economic theory developed by a group of 18th-century Age of Enlightenment French economists who believed that the wealth of nations derived solely from the value of "land agricult ...
and intendant of commerce in the 1750s, popularized the term ''laissez-faire'' as he allegedly adopted it from François Quesnay's writings on China. Quesnay coined the phrases ''laissez-faire'' and ''laissez-passer'', ''laissez-faire'' being a translation of the Chinese term ''
wu wei ''Wu wei'' () is an ancient Chinese concept literally meaning "inexertion", "inaction", or "effortless action". ''Wu wei'' emerged in the Spring and Autumn period, and from Confucianism, to become an important concept in Chinese statecraft and T ...
'' (無為). Gournay ardently supported the removal of restrictions on trade and the deregulation of industry in France. Delighted with the Colbert–Le Gendre anecdote, he forged it into a larger maxim all his own: "Laissez faire et laissez passer" ("Let do and let pass"). His motto has also been identified as the longer "Laissez faire et laissez passer, le monde va de lui même !" ("Let do and let pass, the world goes on by itself!"). Although Gournay left no written tracts on his economic policy ideas, he had immense personal influence on his contemporaries, notably his fellow Physiocrats, who credit both the ''laissez-faire'' slogan and the doctrine to Gournay. Before d'Argenson or Gournay, P. S. de Boisguilbert had enunciated the phrase "On laisse faire la nature" ("Let nature run its course"). D'Argenson himself during his life was better known for the similar, but less-celebrated motto "Pas trop gouverner" ("Govern not too much"). The Physiocrats proclaimed ''laissez-faire'' in 18th-century France, placing it at the very core of their economic principles and famous economists, beginning with Adam Smith, developed the idea.Fine, Sidney. ''Laissez Faire and the General-Welfare State''. United States: The University of Michigan Press, 1964. Print It is with the Physiocrats and the classical
political economy Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour ...
that the term ''laissez-faire'' is ordinarily associated. The book ''Laissez Faire and the General-Welfare State'' states: "The physiocrats, reacting against the excessive mercantilist regulations of the France of their day, expressed a belief in a 'natural order' or liberty under which individuals in following their selfish interests contributed to the general good. Since, in their view, this natural order functioned successfully without the aid of government, they advised the state to restrict itself to upholding the rights of private property and individual liberty, to removing all artificial barriers to trade, and to abolishing all useless laws". The French phrase ''laissez-faire'' gained currency in English-speaking countries with the spread of Physiocratic literature in the late 18th century. George Whatley's 1774 ''Principles of Trade'' (co-authored with
Benjamin Franklin Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading int ...
) re-told the Colbert-LeGendre anecdote; this may mark the first appearance of the phrase in an English-language publication.
Herbert Spencer Herbert Spencer (27 April 1820 – 8 December 1903) was an English philosopher, psychologist, biologist, anthropologist, and sociologist famous for his hypothesis of social Darwinism. Spencer originated the expression " survival of the f ...
was opposed to a slightly different application of ''laissez faire''—to "that miserable ''laissez-faire''" that leads to men's ruin, saying: "Along with that miserable ''laissez-faire'' which calmly looks on while men ruin themselves in trying to enforce by law their equitable claims, there goes activity in supplying them, at other men's cost, with gratis novel-reading!" As a product of the Enlightenment, ''laissez-faire'' was "conceived as the way to unleash human potential through the restoration of a natural system, a system unhindered by the restrictions of government".Gaspard, Toufick. ''A Political Economy of Lebanon 1948–2002: The Limits of Laissez-faire''. Boston: Brill, 2004. In a similar vein, Adam Smith viewed the economy as a natural system and the market as an organic part of that system. Smith saw ''laissez-faire'' as a moral program and the market its instrument to ensure men the rights of
natural law Natural law ( la, ius naturale, ''lex naturalis'') is a system of law based on a close observation of human nature, and based on values intrinsic to human nature that can be deduced and applied independently of positive law (the express enacte ...
. By extension,
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
s become a reflection of the natural system of liberty. For Smith, ''laissez-faire'' was "a program for the abolition of laws constraining the market, a program for the restoration of order and for the activation of potential growth". However, Smith and notable classical economists such as Thomas Malthus and
David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British political economist. He was one of the most influential of the classical economists along with Thomas Malthus, Adam Smith and James Mill. Ricardo was also a politician, and a ...
did not use the phrase. Jeremy Bentham used the term, but it was probably
James Mill James Mill (born James Milne; 6 April 1773 – 23 June 1836) was a Scottish historian, economist, political theorist, and philosopher. He is counted among the founders of the Ricardian school of economics. He also wrote ''The History of Briti ...
's reference to the ''laissez-faire'' maxim (together with the "Pas trop gouverner" motto) in an 1824 entry for the ''Encyclopædia Britannica'' that really brought the term into wider English usage. With the advent of the Anti-Corn Law League (founded 1838), the term received much of its English meaning. Smith first used the metaphor of an
invisible hand The invisible hand is a metaphor used by the British moral philosopher Adam Smith that describes the unintended greater social benefits and public good brought about by individuals acting in their own self-interests. Smith originally mention ...
in his book ''
The Theory of Moral Sentiments ''The Theory of Moral Sentiments'' is a 1759 book by Adam Smith. It provided the ethical, philosophical, economic, and methodological underpinnings to Smith's later works, including '' The Wealth of Nations'' (1776), ''Essays on Philosophica ...
'' (1759) to describe the unintentional effects of economic self-organization from economic self-interest. Although not the metaphor itself, the idea lying behind the invisible hand belongs to Bernard de Mandeville and his '' Fable of the Bees'' (1705). In political economy, that idea and the doctrine of ''laissez-faire'' have long been closely related. Some have characterized the invisible-hand metaphor as one for ''laissez-faire'', although Smith never actually used the term himself.Roy C. Smith, ''Adam Smith and the Origins of American Enterprise: How the Founding Fathers Turned to a Great Economist's Writings and Created the American Economy'', Macmillan, 2004, , pp. 13–14. In ''Third Millennium Capitalism'' (2000), Wyatt M. Rogers Jr. notes a trend whereby recently "conservative politicians and economists have chosen the term 'free-market capitalism' in lieu of ''laissez-faire''". American individualist anarchists such as Benjamin Tucker saw themselves as economic ''laissez-faire'' socialists and political individualists while arguing that their "anarchistic socialism" or "individual anarchism" was "consistent
Manchesterism Manchester Liberalism (also called the Manchester School, Manchester Capitalism and Manchesterism) comprises the political, economic and social movements of the 19th century that originated in Manchester, England. Led by Richard Cobden and John ...
".


History


Europe

In Europe, the ''laissez-faire'' movement was first widely promoted by the Physiocrats, a movement that included Vincent de Gournay (1712–1759), a successful merchant turned political figure. Gournay is postulated to have adapted the Taoist concept ''
wu wei ''Wu wei'' () is an ancient Chinese concept literally meaning "inexertion", "inaction", or "effortless action". ''Wu wei'' emerged in the Spring and Autumn period, and from Confucianism, to become an important concept in Chinese statecraft and T ...
'', from the writings on China by François Quesnay (1694–1774). Gournay held that government should allow the laws of nature to govern economic activity, with the state only intervening to protect life, liberty and property. François Quesnay and Anne Robert Jacques Turgot, Baron de l'Aulne took up Gournay's ideas. Quesnay had the ear of the King of France,
Louis XV Louis XV (15 February 1710 – 10 May 1774), known as Louis the Beloved (french: le Bien-Aimé), was King of France from 1 September 1715 until his death in 1774. He succeeded his great-grandfather Louis XIV at the age of five. Until he reache ...
and in 1754 persuaded him to give ''laissez-faire'' a try. On September 17, the King abolished all tolls and restraints on the sale and transport of grain. For more than a decade, the experiment appeared successful, but 1768 saw a poor harvest, and the cost of bread rose so high that there was widespread starvation while merchants exported grain in order to obtain the best profit. In 1770, the Comptroller-General of Finances
Joseph Marie Terray Abbot Joseph Marie Terray (1715 – 18 February 1778) was a Controller-General of Finances during the reign of Louis XV of France, an agent of fiscal reform. Biography Terray, tonsured but not a priest, was appointed in 1736 an ecclesiastical co ...
revoked the edict allowing free trade in grain. The doctrine of ''laissez-faire'' became an integral part of 19th-century European liberalism. Just as liberals supported
freedom of thought Freedom of thought (also called freedom of conscience) is the freedom of an individual to hold or consider a fact, viewpoint, or thought, independent of others' viewpoints. Overview Every person attempts to have a cognitive proficiency ...
in the intellectual sphere, so were they equally prepared to champion the principles of
free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...
and
free competition Free may refer to: Concept * Freedom, having the ability to do something, without having to obey anyone/anything * Freethought, a position that beliefs should be formed only on the basis of logic, reason, and empiricism * Emancipate, to procure ...
in the sphere of economics, seeing the state as merely a passive policeman, protecting private property and administering justice, but not interfering with the affairs of its citizens. Businessmen, British industrialists in particular, were quick to associate these principles with their own economic interests. Many of the ideas of the physiocrats spread throughout Europe and were adopted to a greater or lesser extent in
Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic countries, Nordic c ...
,
Tuscany it, Toscano (man) it, Toscana (woman) , population_note = , population_blank1_title = , population_blank1 = , demographics_type1 = Citizenship , demographics1_footnotes = , demographics1_title1 = Italian , demogra ...
,
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = '' Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , ...
and in the newly created
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
. Adam Smith, author of '' The Wealth of Nations'' (1776), met Quesnay and acknowledged his influence. In Britain, the newspaper ''
The Economist ''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...
'' (founded in 1843) became an influential voice for ''laissez-faire''
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
. ''Laissez-faire'' advocates opposed food aid for famines occurring within the
British Empire The British Empire was composed of the dominions, colonies, protectorates, mandates, and other territories ruled or administered by the United Kingdom and its predecessor states. It began with the overseas possessions and trading posts e ...
. In 1847, referring to the famine then underway in
Ireland Ireland ( ; ga, Éire ; Ulster-Scots: ) is an island in the North Atlantic Ocean, in north-western Europe. It is separated from Great Britain to its east by the North Channel, the Irish Sea, and St George's Channel. Ireland is the s ...
, founder of ''The Economist'' James Wilson wrote: "It is no man's business to provide for another". More specifically, in An Essay on the Principle of Population, Malthus argued that there was nothing that could be done to avoid famines because he felt he had mathematically proven that population growth tends to exceed growth in food production. However, ''The Economist'' campaigned against the Corn Laws that protected landlords in the
United Kingdom of Great Britain and Ireland The United Kingdom of Great Britain and Ireland was a sovereign state in the British Isles that existed between 1801 and 1922, when it included all of Ireland. It was established by the Acts of Union 1800, which merged the Kingdom of Grea ...
against competition from less expensive foreign imports of cereal products. The Great Famine in Ireland in 1845 led to the repeal of the Corn Laws in 1846. The tariffs on grain which kept the price of bread artificially high were repealed. However, repeal of the Corn Laws came too late to stop the Irish famine, partly because it was done in stages over three years. A group that became known as the Manchester Liberals, to which Richard Cobden (1804–1865) and John Bright (1811–1889) belonged, were staunch defenders of free trade. After the death of Cobden, the Cobden Club (founded in 1866) continued their work. In 1860, Britain and France concluded a
trade treaty A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common tr ...
, after which other European countries signed several similar treaties. The breakdown of ''laissez-faire'' as practised by the British Empire was partly led by British companies eager for state support of their positions abroad, in particular British oil companies. In Italy, philosopher Benedetto Croce created the term "liberism" (derived from the Italian term ''liberismo''), a term for the
economic doctrine Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyze ...
of ''laissez-faire''
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
; it is synonymous with
economic liberalism Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic libera ...
. Sartori imported the term from Italian in order to distinguish between
social liberalism Social liberalism (german: Sozialliberalismus, es, socioliberalismo, nl, Sociaalliberalisme), also known as new liberalism in the United Kingdom, modern liberalism, or simply liberalism in the contemporary United States, left-liberalism ...
, which is generally considered a political ideology often advocating extensive government intervention in the economy, and those economic liberal theories that propose to virtually eliminate such intervention. In informal usage, liberism overlaps with other concepts such as
free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...
,
neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent f ...
, right-libertarianism, the American concept of libertarianism, and the ''laissez-faire'' doctrine of the French liberal
Doctrinaires During the Bourbon Restoration (1814–1830) and the July Monarchy (1830–1848), the Doctrinals (french: doctrinaires) were a group of French royalists who hoped to reconcile the monarchy with the French Revolution and power with liberty. Hea ...
. Croce claims that "Liberalism can prove only a temporary right of private propriety of land and industries." It was popularized in
English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ...
by Italian political scientist Giovanni Sartori. The intention of Croce and of Sartori to attack the right to private property and to free enterprise separating them from the general philosophy of liberalism, that is primarily a theory of natural rights, was always criticised openly by the quoted philosophers and by some of the main representatives of liberalism, such as Luigi Einaudi and
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Hayek ...
. and the Nobel laureates
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
, as well as Hayek. The differences between the economical concept of liberism and the economical consequences of the liberalism become evident in the definition of market as quoted by the
Austrian School The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian scho ...
economist Eugen von Böhm-Bawerk: "A market is a law system. Without it, the only possible economy is the street robbery."


United States

Frank Bourgin's study of the Constitutional Convention and subsequent decades argues that direct government involvement in the economy was intended by the Founding Fathers. The reason for this was the economic and financial chaos the nation suffered under the Articles of Confederation. The goal was to ensure that dearly-won political independence was not lost by being economically and financially dependent on the powers and princes of Europe. The creation of a strong central government able to promote science, invention, industry and commerce was seen as an essential means of promoting the general welfare and making the economy of the United States strong enough for them to determine their own destiny. Others view Bourgin's study, written in the 1940s and not published until 1989, as an over-interpretation of the evidence, intended originally to defend the New Deal and later to counter Ronald Reagan's economic policies. Historian Kathleen G. Donohue argues that in the 19th century liberalism in the United States had distinctive characteristics and that "at the center of classical liberal theory
n Europe N, or n, is the fourteenth letter in the Latin alphabet, used in the modern English alphabet, the alphabets of other western European languages and others worldwide. Its name in English is ''en'' (pronounced ), plural ''ens''. History ...
was the idea of ''laissez-faire''. To the vast majority of American classical liberals, however, ''laissez-faire'' did not mean "no government intervention" at all. On the contrary, they were more than willing to see government provide tariffs, railroad subsidies, and internal improvements, all of which benefited producers". Notable examples of government intervention in the period prior to the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States. It was fought between the Union (American Civil War), Union ("the North") and t ...
include the establishment of the Patent Office in 1802; the establishment of the Office of Standard Weights and Measures in 1830; the creation of the Coast and Geodetic Survey in 1807 and other measures to improve river and harbor navigation; the various
Army An army (from Old French ''armee'', itself derived from the Latin verb ''armāre'', meaning "to arm", and related to the Latin noun ''arma'', meaning "arms" or "weapons"), ground force or land force is a fighting force that fights primarily on ...
expeditions to the west, beginning with Lewis and Clark's
Corps of Discovery The Corps of Discovery was a specially established unit of the United States Army which formed the nucleus of the Lewis and Clark Expedition that took place between May 1804 and September 1806. The Corps was led jointly by Captain Meriwether Lew ...
in 1804 and continuing into the 1870s, almost always under the direction of an officer from the Army Corps of Topographical Engineers and which provided crucial information for the overland pioneers that followed; the assignment of Army Engineer officers to assist or direct the surveying and construction of the early railroads and canals; and the establishment of the First Bank of the United States and Second Bank of the United States as well as various protectionist measures (e.g. the
tariff of 1828 The Tariff of 1828 was a very high protective tariff that became law in the United States in May 1828. It was a bill designed to not pass Congress because it was seen by free trade supporters as hurting both industry and farming, but surprisin ...
). Several of these proposals met with serious opposition and required a great deal of horse-trading to be enacted into law. For instance, the First National Bank would not have reached the desk of President
George Washington George Washington (February 22, 1732, 1799) was an American military officer, statesman, and Founding Father who served as the first president of the United States from 1789 to 1797. Appointed by the Continental Congress as commander of ...
in the absence of an agreement that was reached between Alexander Hamilton and several Southern members of Congress to locate the capitol in the
District of Columbia ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle (Washington, D.C.), Logan Circle, Jefferson Memoria ...
. In contrast to Hamilton and the Federalists was
Thomas Jefferson Thomas Jefferson (April 13, 1743 – July 4, 1826) was an American statesman, diplomat, lawyer, architect, philosopher, and Founding Fathers of the United States, Founding Father who served as the third president of the United States from 18 ...
and
James Madison James Madison Jr. (March 16, 1751June 28, 1836) was an American statesman, diplomat, and Founding Father. He served as the fourth president of the United States from 1809 to 1817. Madison is hailed as the "Father of the Constitution" for h ...
's opposing political party, the
Democratic-Republicans The Democratic-Republican Party, known at the time as the Republican Party and also referred to as the Jeffersonian Republican Party among other names, was an American political party founded by Thomas Jefferson and James Madison in the ear ...
. Most of the early opponents of ''laissez-faire'' capitalism in the United States subscribed to the American School. This school of thought was inspired by the ideas of Hamilton, who proposed the creation of a government-sponsored bank and increased tariffs to favor Northern industrial interests. Following Hamilton's death, the more abiding protectionist influence in the antebellum period came from Henry Clay and his American System. In the early 19th century, "it is quite clear that the ''laissez-faire'' label is an inappropriate one" to apply to the relationship between the United States government and industry. In the mid-19th century, the United States followed the Whig tradition of
economic nationalism Economic nationalism, also called economic patriotism and economic populism, is an ideology that favors state interventionism over other market mechanisms, with policies such as domestic control of the economy, labor, and capital formation, inclu ...
, which included increased state control, regulation and
macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, an ...
development of infrastructure. Public works such as the provision and regulation
transportation Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
such as railroads took effect. The Pacific Railway Acts provided the development of the First transcontinental railroad. In order to help pay for its war effort in the Civil War, the United States government imposed its first personal
income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...
on 5 August 1861 as part of the Revenue Act of 1861 (3% of all incomes over US$800; rescinded in 1872). Following the Civil War, the movement towards a mixed economy accelerated. Protectionism increased with the
McKinley Tariff The Tariff Act of 1890, commonly called the McKinley Tariff, was an act of the United States Congress, framed by then Representative William McKinley, that became law on October 1, 1890. The tariff raised the average duty on imports to almost fift ...
of 1890 and the
Dingley Tariff The Dingley Act of 1897 (ch. 11, , July 24, 1897), introduced by U.S. Representative Nelson Dingley Jr., of Maine, raised tariffs in United States to counteract the Wilson–Gorman Tariff Act of 1894, which had lowered rates. The bill came into ...
of 1897. Government regulation of the economy expanded with the enactment of the Interstate Commerce Act of 1887 and the
Sherman Anti-trust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. T ...
. The Progressive Era saw the enactment of more controls on the economy as evidenced by the
Woodrow Wilson Thomas Woodrow Wilson (December 28, 1856February 3, 1924) was an American politician and academic who served as the 28th president of the United States from 1913 to 1921. A member of the Democratic Party, Wilson served as the president of ...
administration's New Freedom program. Following
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
and the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, the United States turned to a mixed economy which combined free enterprise with a progressive income tax and in which from time to time the government stepped in to support and protect American industry from competition from overseas. For example, in the 1980s the government sought to protect the automobile industry by "voluntary" export restrictions from
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...
. In 1986, Pietro S. Nivola wrote: "By and large, the comparative strength of the dollar against major foreign currencies has reflected high U.S. interest rates driven by huge federal budget deficits. Hence, the source of much of the current deterioration of trade is not the general state of the economy, but rather the government's mix of fiscal and monetary policies – that is, the problematic juxtaposition of bold tax reductions, relatively tight monetary targets, generous military outlays, and only modest cuts in major entitlement programs. Put simply, the roots of the trade problem and of the resurgent protectionism it has fomented are fundamentally political as well as economic". A more recent advocate of total ''laissez-faire'' has been Objectivist Ayn Rand, who described it as "the abolition of any and all forms of government intervention in production and trade, the separation of State and Economics, in the same way and for the same reasons as the separation of Church and State". This viewpoint is summed up in what is known as the iron law of regulation, which is a theory stating that all government economic regulation eventually leads to a net loss in social welfare. Rand's political philosophy emphasized individual rights (including property rights) and she considered ''laissez-faire'' capitalism the only moral social system because in her view it was the only system based on the protection of those rights.; . She opposed statism, which she understood to include
theocracy Theocracy is a form of government in which one or more deities are recognized as supreme ruling authorities, giving divine guidance to human intermediaries who manage the government's daily affairs. Etymology The word theocracy originates fr ...
,
absolute monarchy Absolute monarchy (or Absolutism as a doctrine) is a form of monarchy in which the monarch rules in their own right or power. In an absolute monarchy, the king or queen is by no means limited and has absolute power, though a limited constituti ...
,
Nazism Nazism ( ; german: Nazismus), the common name in English for National Socialism (german: Nationalsozialismus, ), is the far-right totalitarian political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) i ...
,
fascism Fascism is a far-right, authoritarian, ultra-nationalist political ideology and movement,: "extreme militaristic nationalism, contempt for electoral democracy and political and cultural liberalism, a belief in natural social hierarchy and t ...
,
communism Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, ...
,
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes th ...
and
dictatorship A dictatorship is a form of government which is characterized by a leader, or a group of leaders, which holds governmental powers with few to no limitations on them. The leader of a dictatorship is called a dictator. Politics in a dictatorship a ...
. Rand believed that natural rights should be enforced by a constitutionally limited government. Although her political views are often classified as conservative or libertarian, she preferred the term "radical for capitalism". She worked with conservatives on political projects, but disagreed with them over issues such as religion and ethics. She denounced libertarianism, which she associated with anarchism. She rejected anarchism as a naïve theory based in subjectivism that could only lead to collectivism in practice.


Models


Capitalism

A closely related name for ''laissez-faire'' capitalism that of raw, pure, or unrestrained capitalism, which refers to capitalism free of any
regulation Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. ...
s, with low or minimal government and operating almost entirely on the profit motive. It shares a similar economic conception with anarcho-capitalism. In modern economics it typically has a bad connotation, which hints towards a perceived need for restraint due to social needs and securities that can not be adequately responded to by companies with just a motive for making profit. Robert Kuttner states that "for over a century, popular struggles in democracies have used the nation-state to temper raw capitalism. The power of voters has offset the power of capital. But as national barriers have come down in the name of freer commerce, so has the capacity of governments to manage capitalism in a broad public interest. So the real issue is not 'trade' but democratic governance". The main issues of raw capitalism are said to lie in its disregard for quality,
durability Durability is the ability of a physical product to remain functional, without requiring excessive maintenance or repair, when faced with the challenges of normal operation over its design lifetime. There are several measures of durability in us ...
,
sustainability Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livi ...
, respect for the
environment Environment most often refers to: __NOTOC__ * Natural environment, all living and non-living things occurring naturally * Biophysical environment, the physical and biological factors along with their chemical interactions that affect an organism or ...
and human beings as well as a lack of morality. From this more critical angle, companies might naturally aim to maximise profits at the expense of workers' and broader social interests. Advocates of laissez-faire capitalism argue that it relies on a constitutionally limited government that unconditionally bans the initiation of force and coercion, including fraud. Therefore, free market economists such as Milton Friedman and Thomas Sowell argue that, under such a system, relationships between companies and workers are purely voluntary and mistreated workers will seek better treatment elsewhere. Thus, most companies will compete for workers on the basis of pay, benefits, and work-life balance just as they compete with one another in the marketplace on the basis of the relative cost and quality of their goods. So-called "raw" or "hyper-capitalism" is a major motif of
cyberpunk Cyberpunk is a subgenre of science fiction in a dystopian futuristic setting that tends to focus on a "combination of lowlife and high tech", featuring futuristic technological and scientific achievements, such as artificial intelligence and ...
in dystopian works such as '' Syndicate''.


Socialism

Although ''laissez-faire'' has been commonly associated with
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
, there is a similar ''laissez-faire'' economic theory and system associated with socialism called left-wing ''laissez-faire'', or free-market anarchism, also known as free-market anti-capitalism and
free-market socialism Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy, or one that contains a mix of worker-owned, nationalized, and privately owned ...
to distinguish it from ''laissez-faire'' capitalism. One first example of this is mutualism as developed by
Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris) was a French socialist,Landauer, Carl; Landauer, Hilde Stein; Valkenier, Elizabeth Kridl (1979) 959 "The Three Anticapitalistic Movements". ''European Socia ...
in the 18th century, from which emerged individualist anarchism. Benjamin Tucker is one eminent American individualist anarchist who adopted a ''laissez-faire'' system he termed anarchistic socialism in contraposition to state socialism. This tradition has been recently associated with contemporary scholars such as Kevin Carson, Roderick T. Long, Charles W. Johnson, Brad Spangler, Sheldon Richman,Sheldon Richman (3 February 2011).
Libertarian Left: Free-market anti-capitalism, the unknown ideal
." ''The American Conservative''. Retrieved 5 March 2012.
Chris Matthew Sciabarra Chris Matthew Sciabarra (born February 17, 1960) is an American political theorist based in Brooklyn, New York. He is the author of three scholarly books—''Marx, Hayek, and Utopia''; '' Ayn Rand: The Russian Radical''; and ''Total Freedom: T ...
and
Gary Chartier Gary William Chartier (born 1966) Gary Chartier is a legal scholar, philosopher, political theorist, and theologian. His work addresses anarchism and ethics. Chartier is a professor and serves as associate dean of La Sierra University's busines ...
, who stress the value of radically free markets, termed freed markets to distinguish them from the common conception which these left-libertarians believe to be riddled with
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
and statist privileges.Gillis, William (2011). "The Freed Market." In Chartier, Gary and Johnson, Charles. ''Markets Not Capitalism''. Brooklyn, NY: Minor Compositions/Autonomedia. pp. 19–20. Referred to as left-wing market anarchists or market-oriented left-libertarians, proponents of this approach strongly affirm the classical liberal ideas of self-ownership and
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
s while maintaining that taken to their logical conclusions these ideas support anti-capitalist,
anti-corporatist Anti-corporate activism refers to the idea of activism that is directed against the private sector, and specifically against larger corporations. It stems from the idea that the activities and impacts of big business are detrimental to the pub ...
, anti-hierarchical and pro-labor positions in economics; anti-imperialism in foreign policy; and thoroughly radical views regarding such cultural issues as gender, sexuality and race. Critics of ''laissez-faire'' as commonly understood argues that a truly ''laissez-faire'' system would be anti-capitalist and socialist. Kevin Carson describes his politics as on "the outer fringes of both free market libertarianism and
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes th ...
" and has also been highly critical of
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...
. Carson has identified the work of Benjamin Tucker,
Thomas Hodgskin Thomas Hodgskin (12 December 1787 – 21 August 1869) was an English socialist writer on political economy, critic of capitalism and defender of free trade and early trade unions. In the late 19th and early 20th centuries, the term ''socialis ...
, Ralph Borsodi, Paul Goodman, Lewis Mumford, Elinor Ostrom, Peter Kropotkin and
Ivan Illich Ivan Dominic Illich ( , ; 4 September 1926 – 2 December 2002) was an Austrian Roman Catholic priest, theologian, philosopher, and social critic. His 1971 book ''Deschooling Society'' criticises modern society's institutional approach to edu ...
as sources of inspiration for his approach to politics and economics. In addition to individualist anarchist Benjamin Tucker's big four monopolies (land, money, tariffs and patents), he argues that the state has also transferred wealth to the wealthy by subsidizing organizational centralization in the form of transportation and communication subsidies. Carson believes that Tucker overlooked this issue due to Tucker's focus on individual market transactions whereas he also focuses on organizational issues. As such, the primary focus of his most recent work has been decentralized manufacturing and the informal and household economies. The theoretical sections of Carson's '' Studies in Mutualist Political Economy'' are also presented as an attempt to integrate marginalist critiques into the labor theory of value. In response to claims that he uses the term capitalism incorrectly, Carson says he is deliberately choosing to resurrect what he claims to be an old definition of the term in order to "make a point". He claims that "the term 'capitalism,' as it was originally used, did not refer to a free market, but to a type of statist class system in which capitalists controlled the state and the state intervened in the market on their behalf". Carson holds that "capitalism, arising as a new class society directly from the old class society of the
Middle Ages In the history of Europe, the Middle Ages or medieval period lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history. It began with the fall of the Western Roman Empire ...
, was founded on an act of robbery as massive as the earlier feudal conquest of the land. It has been sustained to the present by continual state intervention to protect its system of privilege without which its survival is unimaginable".Richman, Sheldon
Libertarian Left
, ''
The American Conservative ''The American Conservative'' (''TAC'') is a magazine published by the American Ideas Institute which was founded in 2002. Originally published twice a month, it was reduced to monthly publication in August 2009, and since February 2013, it has ...
'' (March 2011).
Carson argues that in a truly ''laissez-faire'' system the ability to extract a profit from labor and capital would be negligible. Carson coined the
pejorative A pejorative or slur is a word or grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Sometimes, a ...
term vulgar libertarianism, a phrase that describes the use of a free market rhetoric in defense of corporate capitalism and economic inequality. According to Carson, the term is derived from the phrase vulgar political economy which
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...
described as an economic order that "deliberately becomes increasingly apologetic and makes strenuous attempts to talk out of existence the ideas which contain the contradictions xisting in economic life. Gary Chartier offers an understanding of property rights as contingent yet tightly constrained social strategies, reflective of the importance of multiple, overlapping rationales for separate ownership and of
natural law Natural law ( la, ius naturale, ''lex naturalis'') is a system of law based on a close observation of human nature, and based on values intrinsic to human nature that can be deduced and applied independently of positive law (the express enacte ...
principles of practical reasonableness, defending robust yet non-absolute protections for these rights in a manner similar to that employed by
David Hume David Hume (; born David Home; 7 May 1711 NS (26 April 1711 OS) – 25 August 1776) Cranston, Maurice, and Thomas Edmund Jessop. 2020 999br>David Hume" '' Encyclopædia Britannica''. Retrieved 18 May 2020. was a Scottish Enlightenment ph ...
. This account is distinguished both from
Lockean John Locke (; 29 August 1632 – 28 October 1704) was an English philosopher and physician, widely regarded as one of the most influential of Enlightenment thinkers and commonly known as the "father of liberalism". Considered one of ...
and neo-Lockean views which deduce property rights from the idea of self-ownership and from
consequentialist In ethical philosophy, consequentialism is a class of normative, teleological ethical theories that holds that the consequences of one's conduct are the ultimate basis for judgment about the rightness or wrongness of that conduct. Thus, from ...
accounts that might license widespread ad hoc interference with the possessions of groups and individuals. Chartier uses this account to ground a clear statement of the natural law basis for the view that solidaristic wealth redistribution by individual persons is often morally required, but as a response by individuals and grass-roots networks to particular circumstances rather than as a state-driven attempt to achieve a particular distributive pattern. He advances detailed arguments for
workplace democracy Workplace democracy is the application of democracy in various forms (examples include voting systems, debates, democratic structuring, due process, adversarial process, systems of appeal) to the workplace. It can be implemented in a variety ...
rooted in such natural law principles as subsidiarity, defending it as morally desirable and as a likely outcome of the elimination of injustice rather than as something to be mandated by the state. Chartier has discussed natural law approaches to
land reform Land reform is a form of agrarian reform involving the changing of laws, regulations, or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution, generally of agricultura ...
and to the occupation of factories by workers. He objects on natural law grounds to intellectual property protections, drawing on his theory of property rights more generally and develops a general natural law account of boycotts. He has argued that proponents of genuinely freed markets should explicitly reject capitalism and identify with the global anti-capitalist movement while emphasizing that the abuses the anti-capitalist movement highlights result from state-tolerated violence and state-secured privilege rather than from voluntary cooperation and exchange. According to Chartier, "it makes sense for reed-market advocatesto name what they oppose 'capitalism.' Doing so calls attention to the freedom movement's radical roots, emphasizes the value of understanding society as an alternative to the state, underscores the fact that proponents of freedom object to non-aggressive as well as aggressive restraints on liberty, ensures that advocates of freedom aren't confused with people who use market rhetoric to prop up an unjust status quo, and expresses solidarity between defenders of freed markets and workers — as well as ordinary people around the world who use "capitalism" as a short-hand label for the world-system that constrains their freedom and stunts their lives".


Criticism

Over the years, a number of economists have offered critiques of ''laissez-faire'' economics. Adam Smith acknowledges some moral ambiguities towards the system of capitalism.Spencer J. Pack. Capitalism as a Moral System: Adam Smith's Critique of the Free Market Economy. Great Britain: Edward Elgar, 2010. Print Smith had misgivings concerning some aspects of each of the major character-types produced by modern capitalist society, namely the landlords, the workers and the capitalists. Smith claimed that " e landlords' role in the economic process is passive. Their ability to reap a revenue solely from ownership of land tends to make them indolent and inept, and so they tend to be unable to even look after their own economic interests" and that " e increase in population should increase the demand for food, which should increase rents, which should be economically beneficial to the landlords". According to Smith, the landlords should be in favour of policies which contribute to the growth in the wealth of nations, but they often are not in favour of these pro-growth policies because of their own indolent-induced ignorance and intellectual flabbiness. Many philosophers have written on the systems society has created to manage their civilizations. Thomas Hobbes utilized the concept of a "state of nature," which is a time before any government or laws, as a starting point to consider the question. In this time, life would be "war of all against all." Further, "In such condition, there is no place for industry; because the fruit thereof is uncertain . . . continual fear and danger of violent death, and the life of man solitary, poor, nasty, brutish, and short." Smith was quite clear that he believed that without morality and laws, society would fail. From that perspective, it would be strange for Smith to support a pure Laissez-Faire style of capitalism, and what he does support in Wealth of Nations is heavily dependent on the moral philosophy from his previous work, Theory of Moral Sentiments. Regardless of preferred political preference, all societies require shared moral values as a prerequisite on which to build laws to protect individuals from each other. Adam Smith wrote Wealth of Nations during the Enlightenment, a period of time when the prevailing attitude was, "All things can be Known." In effect, European thinkers, inspired by the likes of Isaac Newton and others, set about to "find the laws" of all things, that there existed a "natural law" underlying all aspects of life. They believed that these could be discovered and that everything in the universe could be rationally demystified and cataloged, including human interactions. Critics and market abolitionists such as David McNally argue in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that Smith's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free market he championed. According to McNally, the development of the market economy involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. The British economist
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
condemned ''laissez-faire'' economic policy on several occasions. In ''The End of Laissez-faire'' (1926), one of the most famous of his critiques, Keynes argues that the doctrines of ''laissez-faire'' are dependent to some extent on improper deductive reasoning and says the question of whether a market solution or state intervention is better must be determined on a case-by-case basis. The
Austrian School The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian scho ...
economist
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Hayek ...
stated that a freely competitive, ''laissez-faire'' banking industry tends to be endogenously destabilizing and pro-cyclical, arguing that the need for central banking control was inescapable. Karl Polanyi's ''Great Transformation'' criticizes self-regulating markets as aberrational, unnatural phenomena which tend towards social disruption.


See also

* Anarcho-capitalism * "Authoritarian liberalism", a term by Hermann Heller * Corporatocracy * Deregulation *
Economic liberalism Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic libera ...
*
Free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
* Free-market anarchism *
Free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...
* History of economic thought * Liberism * Libertarianism * Market fundamentalism *
Market socialism Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy, or one that contains a mix of worker-owned, nationalized, and privately owned ...
*
Neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent f ...
* Objectivism * Physiocracy *
Privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
*
Wu wei ''Wu wei'' () is an ancient Chinese concept literally meaning "inexertion", "inaction", or "effortless action". ''Wu wei'' emerged in the Spring and Autumn period, and from Confucianism, to become an important concept in Chinese statecraft and T ...


References


Further reading

* * * * Gerlach, Cristian (2005) Wu-Wei in Europe
A Study of Eurasian Economic Thought
London School of Economics. * * Bourgin, Frank ''The Great Challenge: The Myth of Laissez-Faire in the Early Republic'' (George Braziller Inc., 1989; Harper & Row, 1990). * * by Christian Gerlach, London School of Economics – March 2005.

. * Carter Goodrich,
Government Promotion of American Canals and Railroads, 1800–1890
'' (Greenwood Press, 1960). ** Goodrich, Carter. "American Development Policy: the Case of Internal Improvements," ''Journal of Economic History'', 16 (1956), 449–460. ** Goodrich, Carter. "National Planning of Internal Improvements," ''Political Science Quarterly'', 63 (1948), 16–44. * Johnson, E.A.J., ''The Foundations of American Economic Freedom: Government and Enterprise in the Age of Washington'' (University of Minnesota Press, 1973). * * Eisenach, Eldon J. “Nation & Economy.” ''The Lost Promise of Progressivism'', University Press of Kansas, 2021, pp. 138–186, . * Mittermaier, Karl, et al. “Individualism and Public Spirit.” ''The Hand Behind the Invisible Hand: Dogmatic and Pragmatic Views on Free Markets and the State of Economic Theory'', 1st ed.,
Bristol University Press , mottoeng = earningpromotes one's innate power (from Horace, ''Ode 4.4'') , established = 1595 – Merchant Venturers School1876 – University College, Bristol1909 – received royal charter , type ...
, 2020, pp. 115–148, . * de Muijnck, Sam, et al. “Pragmatic Pluralism.” ''Economy Studies: A Guide to Rethinking Economics Education'', Amsterdam University Press, 2021, pp. 301–327, . * Williamson, Stephen D., and Federal Reserve Bank of Minneapolis. Research Department. "Laissez-Faire Banking and Circulating Media of Exchange". no. 382, Federal Reserve Bank of Minneapolis, pp. 1–36, . * Schmidt, Jeremy J. “Laissez-Faire Metaphysics.” ''Water: Abundance, Scarcity, and Security in the Age of Humanity'', New York University Press, 2017, pp. 43–67, . * McGarity, Thomas O. “ art One Introduction” Freedom to Harm: The Lasting Legacy of the Laissez Faire Revival,
Yale University Press Yale University Press is the university press of Yale University. It was founded in 1908 by George Parmly Day, and became an official department of Yale University in 1961, but it remains financially and operationally autonomous. , Yale Univers ...
, 2013, pp. 9–12, . * Viner, Jacob (1991). “Adam Smith and Laissee Faire”. ''Essays on the Intellectual History of Economics'', edited by Douglas A. Irwin,
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 1991, pp. 85–113, . * McGarity, Thomas O. “The Laissez Faire Benchmark.” ''Freedom to Harm: The Lasting Legacy of the Laissez Faire Revival'',
Yale University Press Yale University Press is the university press of Yale University. It was founded in 1908 by George Parmly Day, and became an official department of Yale University in 1961, but it remains financially and operationally autonomous. , Yale Univers ...
, 2013, pp. 13–17, . * Colander, David and Kupers, Roland. “Laissez-Faire Activism.” ''Complexity and the Art of Public Policy: Solving Society’s Problems from the Bottom Up.''
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 2014, pp. 214–236, . * Bowen, Howard R., et al. “Social Responsibilities and Laissez Faire.” ''Social Responsibilities of the Businessman'', University of Iowa Press, 2013, pp. 14–21, . * Bladen, Vincent. “Laissez Faire.” ''From Adam Smith to Maynard Keynes: The Heritage of Political Economy'', University of Toronto Press, 1974, pp. 91–95, . * Perkins, Dwight H. “Government Intervention versus Laissez-Faire in Northeast Asia.” ''East Asian Development'',
Harvard University Press Harvard University Press (HUP) is a publishing house established on January 13, 1913, as a division of Harvard University, and focused on academic publishing. It is a member of the Association of American University Presses. After the retir ...
, 2013, pp. 66–99, . * Calvo, Christopher W. “Laisse-Faire in the American Tradition”. ''The Emergence of Capitalism in Early America'', 1st ed., University Press of Florida, 2020, pp. 27–74, . * Stricker, Frank. “Discipline for the Unemployed; Laissez-Faire for Business (1873–1920).” ''American Unemployment: Past, Present, and Future'', University of Illinois Press, 2020, pp. 15–38, . * Maggor, Noam. “Cultivating the Laissez-Faire Metropolis.” ''Brahmin Capitalism: Frontiers of Wealth and Populism in America’s First Gilded Age'',
Harvard University Press Harvard University Press (HUP) is a publishing house established on January 13, 1913, as a division of Harvard University, and focused on academic publishing. It is a member of the Association of American University Presses. After the retir ...
, 2017, pp. 53–95, . * Blaser, Mario. “Laissez-Faire Progress: Invisibilzing the Yrmo.” ''Storytelling Globalization from the Chaco and Beyond'',
Duke University Press Duke University Press is an academic publisher and university press affiliated with Duke University. It was founded in 1921 by William T. Laprade as The Trinity College Press. (Duke University was initially called Trinity College). In 1926 ...
, 2010, pp. 41–62, . * Howell, Chris. “The Construction of the Collective Laissez-Faire System, 1890–1940.” ''Trade Unions and the State: The Construction of Industrial Relations Institutions in Britain, 1890-2000'',
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 2005, pp. 46–85, . * Leacock, Stephen. “Laissez Faire and Legislation.” ''My Recollection of Chicago and the Doctrine of Laissez Faire'', edited by Carl Spadoni, University of Toronto Press, 1998, pp. 35–40, . * Strum, Philippa. “From Laissez-faire Capitalism to Worker-Management.” ''Brandeis: Beyond Progressivism'', University Press of Kansas, 1993, pp. 24–48, . * Halevi, Leor. “Paper Money and Consummate Men: Capitalism and the Rise of Laissez-Faire Salafism.” ''Modern Things on Trial: Islam’s Global and Material Reformation in the Age of Rida, 1865–1935'',
Columbia University Press Columbia University Press is a university press based in New York City, and affiliated with Columbia University. It is currently directed by Jennifer Crewe (2014–present) and publishes titles in the humanities and sciences, including the fie ...
, 2019, pp. 96–130, . * Kolozi, Peter. “In Search of the Warrior-statesman: The Critique of Laissez-Faire Capitalism by Brooks Adams and Theodore Roosevelt.” ''Conservatives Against Capitalism: From the Industrial Revolution to Globalization'',
Columbia University Press Columbia University Press is a university press based in New York City, and affiliated with Columbia University. It is currently directed by Jennifer Crewe (2014–present) and publishes titles in the humanities and sciences, including the fie ...
, 2017, pp. 51–76, . * Palley, Thomas I. “Milton Friedman: The Great Laissez-Faire Partisan.” '' Economic and Political Weekly'', vol. 41, no. 49, 2006, pp. 5041–5043, . * Holroyd, Carin Lee. “Governments and International Trade: An Intellectual Analysis.” ''Government, International Trade, and Laissez-Faire Capitalism: Canada, Australia, and New Zealand’s Relations with Japan'', McGill-Queen’s University Press, 2002, pp. 15–39, . * Simons, Henry C., William Breit, Roger L. Ransom, and Robert M. Solow. “Radical Proponent of Laissez-faire.” In ''The Academic Scribblers,'' 207–221.
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 1998. . * Henry, John F. “The Ideology of the Laissez Faire Program.” Journal of Economic Issues, vol. 42, no. 1,
Association for Evolutionary Economics The Association for Evolutionary Economics (AFEE) is an international organization of economists working in the institutionalist and evolutionary traditions of Thorstein Veblen, John R. Commons and Wesley Mitchell. It is part of the Allied Social ...
, 2008, pp. 209–224, . * Adams, Walter, and James W. Brock. “The Impact of Economic Power Is Discussed; Public Policy Interests in Economic Liberty and Democratic Process Yield a Conundrum.” Antitrust Economics on Trial: A Dialogue on the New Laissez-Faire,
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 1991, pp. 115–128, . * Lal, Deepak. “From Laissez Faire to the Dirigiste Dogma.” Reviving the Invisible Hand: The Case for Classical Liberalism in the Twenty-First Century,
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
, 2006, pp. 48–61, . * Fried, Barbara H. “The Empty Idea of Property Rights.” ''The Progressive Assault on Laissez Faire: Robert Hale and the First Law and Economics Movement'',
Harvard University Press Harvard University Press (HUP) is a publishing house established on January 13, 1913, as a division of Harvard University, and focused on academic publishing. It is a member of the Association of American University Presses. After the retir ...
, 1998, pp. 71–107, . * Rodgers, Daniel T. “Twilight of Laissez-Faire.” ''Atlantic Crossings: Social Politics in a Progressive Age'',
Harvard University Press Harvard University Press (HUP) is a publishing house established on January 13, 1913, as a division of Harvard University, and focused on academic publishing. It is a member of the Association of American University Presses. After the retir ...
, 1998, pp. 76–111, . * * * * * * * * * * * * *


External links


Laissez-faire
at '' Encyclopædia Britannica'' Online. {{DEFAULTSORT:Laissez-Faire Free-market anarchism Capitalism Classical liberalism Economic history of France Economic liberalism Ideologies of capitalism Individualism Market socialism Minarchism Political movements Political theories Right-wing politics Right-libertarianism
Market socialism Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy, or one that contains a mix of worker-owned, nationalized, and privately owned ...