Laissez-faire is a doctrine of non-interference in political or economic systems, promoting limited government regulation and free markets. Economic anarchists believe in no control at all, while most proponents believe in some regulation to prevent monopolies and corruption. It is generally considered a libertarian ideal and can also be a philosophy of leadership.
Laissez-faire is a French phrase meaning “let it be”. In regards to political or economic systems, laissez-faire is a doctrine of non-interference. Most often, it refers to a disinterested or limited approach by a government to economic matters. This type of government would have little or no economic restrictions on trade or transactions, little or no taxes and tariffs, and few restrictions on businesses. The term could also refer to the governing philosophy of a leader or government in matters other than economics.
Less regulation and control
A laissez-faire approach to economics means less government regulation and fewer artificial controls of manufacturing, buying, selling, trading, and financing. It clearly promotes the free market. Limited government intrusion is the foundation of such a system, although the concept is less absolute than it once was.
People who believe in absolute laissez-faire economics, or no government regulation at all, are sometimes called economic anarchists. They believe in no control at all. “The market will get away with it” is their motto.
While there is some truth to this sentiment, most people who subscribe to the laissez-faire economic model believe that some controls or regulations are needed, if only to prevent monopolies, corruption, and other abuses. Allowing for limited government regulation became more accepted by proponents of this type of policy in the 19th and 20th centuries after some companies outgrew their competitors, absorbed their competitors, and attempted to control supply and demand through production and price control.
The laissez-faire model of economics is embraced by a wide variety of people across the political spectrum. It is rejected, however, by many people who believe that more government regulation is beneficial, even if they see regulation as a necessary evil. Those who reject it often approve of some form of redistribution of wealth, whether in the form of public assistance or corporate welfare. Laissez-faire economics is generally considered a libertarian ideal.
As a leadership philosophy
In addition to being an approach to economics, laissez-faire can be a philosophy of leadership. Many people, however, don’t think a laissez-faire leader is a leader at all. Some people need a leader to exercise authority and control. Others find that leaders who allow people to act according to the dictates of their conscience and to use their own judgment are better received and more respected.
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