Article: Laissez-Faire

LAISSEZ-FAIRE

LAISSEZ-FAIRE, a French term that translates loosely as "let things alone," originated in the eighteenth century with a school of French economists, known as the Physiocrats, who opposed trade restrictions that supported older economic systems such as mercantilism. Adam Smith, an eighteenth-century Scottish economist, popularized the term and gave it added influence in later economic thought. He argued that a society's economic well-being and progress are assured when individuals freely apply their capital and labor without state intervention. The theory holds that individuals act out of self-interest and that self-interested action will benefit the larger community's ...

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