Laissez-Faire
📈 Investing
Quick Definition
Laissez-faire is an economic philosophy advocating minimal government intervention in the market and the economy.
Examples
- 1In a laissez-faire system, a government does not impose price controls or subsidies on goods, allowing prices to be determined by supply and demand.
- 2Businesses operating under laissez-faire are free to make decisions about production and hiring without government regulations.
- 3Countries practicing laissez-faire economics often have lower tax rates and fewer business regulations, encouraging entrepreneurship and innovation.
Tags
economicsgovernmentpolicymarketregulation
Related Terms
Other terms you might find helpful
Fiscal Policy
Fiscal policy refers to the government's use of spending and taxation to influence the economy.
Free Market
A free market is an economic system where prices for goods and services are determined by the open market and consumers, with minimal government intervention.
Monetary Policy
Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025