Laissez-faire

Definition

Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention. It advocates for the natural regulation of markets through the laws of supply and demand.

Related terms

Free market: An economic system where prices are determined by unrestricted competition between privately owned businesses.

Adam Smith: Often referred to as the father of modern economics, he advocated for laissez-faire economic policies in his seminal work, "The Wealth of Nations."

Invisible hand: A metaphor introduced by Adam Smith to describe the self-regulating behavior of the marketplace, guiding individuals to unintentionally benefit society through pursuing their own interests