Laissez-faire

Laissez-faire is short for "laissez faire, laissez passer," a French phrase meaning "let do, let pass." It is pronounced approximately lessEH fare, lessEH pahssEH.

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First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. Laissez-faire economic policy is in direct contrast to statist economic policy. Adam Smith played a large role in popularizing laissez-faire economic theories in English-speaking countries, though he was critical of a number of aspects of what is currently thought of as laissez-faire (such as lack of government regulation of business practices).

Related Topics:
Physiocrats - Free market - Economics - Statist - Adam Smith

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As well as being used in economic management, the term has also been applied more broadly to a style of management and leadership. It describes any form of control where the controlled are given most or all of the decision-making power.

Related Topics:
Management - Leadership

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Some use the term anarchist as a synonym for this use of laissez-faire. Small Government and Minarchism are other synonyms used when describing this theory being applied to government. Both terms can include economic policy.

Related Topics:
Anarchist - Small Government - Minarchism

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Some critics of laissez-faire argue that the attainment of pure capitalism is impossible, for example since it is difficult to deal with market failures without an active role for government. Note that the government of the Soviet Union never achieved "communism" as it saw it, that is, the perfect socialist state.

Related Topics:
Market failure - Soviet Union - Communism - Socialist

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Laissez-faire (imperative) is distinct from laisser faire (infinitive), which refers to a careless attitude in the application of a policy, implying a lack of consideration or thought.

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