Explain the concept of Laissez-faire. Is governmental activity of the past in support of a Laissez Faire svstem?

Laissez-faire is an economic concept that advocates for minimal or no government intervention in the economy. The term originates from the French phrase "laissez faire, laissez passer," which translates to "let do, let pass." In a laissez-faire system, economic activities are guided by the principles of individualism and voluntary exchange, without government influence on prices, production, and consumption.

One historical example that reflects the laissez-faire system is the economic policies implemented during the 'Gilded Age' in the United States (late 19th century). The US government during this period adopted a minimalistic role in regulating businesses and promoting economic interests. The lack of government interference resulted in rapid industrial and economic growth, although it also led to widespread income inequality, child labor, and poor working conditions.

An example contrasting laissez-faire policies would be the introduction of the New Deal by President Franklin D. Roosevelt during the Great Depression in the 1930s in the United States. The New Deal comprised a series of government-sponsored economic programs, legislation, and regulatory measures aimed at alleviating the effects of the Great Depression. This period witnessed a significant expansion of the government's role in the economy, including job creation programs, public works projects, and financial reforms that protected consumers and investors. The New Deal directly contradicted the principles of laissez-faire by introducing strong government intervention in the economy. In conclusion, laissez-faire is an economic system that advocates for minimal or no government intervention in economic activities. Historical examples of government activities provide instances of both support and opposition to a laissez-faire system. Knowing the context of these events helps in understanding the application or refutation of the laissez-faire principles.