Laissez-Faire
An economic philosophy advocating minimal government [Intervention](https://modeldiplomat.com/learn/glossary/intervention) in markets, supported by Adam Smith.
Updated April 24, 2026
Definition
Laissez-faire is a French term meaning 'let do', referring to an economic system where the government exerts little to no control over market activities. Smith believed this approach fosters competition and innovation.
Historical Context
During the 18th century, Smith argued against , advocating for a laissez-faire approach to promote economic growth. He believed that free markets would regulate themselves through competition and consumer choice.
Contemporary Implications
Laissez-faire principles have influenced modern economic policies, particularly in capitalist societies. While pure laissez-faire is rare, many governments adopt elements of this philosophy to encourage entrepreneurship and economic freedom.
Example
Laissez-faire policies allow businesses to operate with little government interference.
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