A Laissez Faire Economic Policy Would Weegy Homework

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Laissez-Faire is an economic policy that says governments should not interfere with the free market; let the market develop on its own.  This means that the government can not control restrictions, taxes, or businesses.  It essentially means that the economy should be left alone for people to do as they please.

Advocates for laissez-faire argue that individual self-interest and competition should dictate what happens to the market, while those against laissez-faire argue that government taxation...

Laissez-Faire is an economic policy that says governments should not interfere with the free market; let the market develop on its own.  This means that the government can not control restrictions, taxes, or businesses.  It essentially means that the economy should be left alone for people to do as they please.

Advocates for laissez-faire argue that individual self-interest and competition should dictate what happens to the market, while those against laissez-faire argue that government taxation and regulation are necessary to protecting the market.

Laissez-faire is a concept that advocates for limited government involvement in and regulation of our economy. There are advantages and disadvantages to this philosophy.

One advantage to this philosophy is that businesses face fewer government rules and regulations. This allows businesses the freedom to do many things. Often rules and regulations add to the costs that businesses face. Sometimes, the rules and regulations make it harder to do business activities. When businesses have fewer rules and regulations, they generally are willing to take more risks and to invest in the economy. With fewer rules and regulations, businesses have a big incentive to try to maximize profits.

A disadvantage of this policy is that businesses may engage in risky behaviors that could lead to future economic problems. In the 1920s, there were few rules and regulations on banks and on the investment industry. Too much money was being loaned to individuals and people could buy stocks with only a small down payment. Banks were also free to invest in the stock market. When the stock market crashed, many people and banks were financially ruined.

Another disadvantage is that government may be slow to respond to a crisis. In laissez-faire economics, the belief exists that the economy goes through cycles, and things will eventually work themselves out. When the Great Depression began, the government did very little because it expected things to eventually improve. By the time the government took more actions, the depression was very severe, and many people were hurting from the effects of the Great Depression.

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