Laissez-faire capitalism is an economic system. Capitalism
involves the ownership of property by individuals. The individual's goal is to use this
property, or capital (buildings, machines, and other equipment used to produce goods and
services), to create income. Individuals and companies compete with one another to earn
money. This competition between companies determines the amount of goods produced and
the prices company owners may demand for these goods. The French term laissez-faire
literally means "to let people do as they wish." Thus, supporters of laissez-faire
capitalism do not want the government to interfere in business matters, or if
governments do involve themselves in business matters, to keep government influence to a
minimum. Although the economies of the United States and many other industrialized
nations are highly capitalistic, there is no pure capitalist system because national
governments regulate business to some
degree.
Further Information:
Buchanan, James M., and Dwight R. Lee. "Having It Both Ways."
Forbes. February 27, 1995, p. 87; "Laissez-Faire." Funk
and Wagnalls.com. [Online] Available target="_blank">http://www.funkand
wagnalls.com/encyclopedia/getpage.asp?book=FWENCOnline&page=015000081.asp,
October 30, 2000; Reisman, George. "Toward the Establishment of Laissez-Faire
Capitalism." Capitalism: A Treatise on Economics. [Online]
Available target="_blank">http://www.capitalism.net/Laissez-Faire%20capitalism.htm,
October 30, 2000.
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