Economic History

In economics, laissez-faire is the idea that governments should allow markets to run on their own and avoid interfering with them. In 1926, British economist John Maynard Keynes published an article titled ‘The End of Laissez-Faire’. In the article he states that the theory of laissez-faire is not complete and is not derived from factual events. It was only advanced because it was challenging for the scholars to research further on the topic. He, therefore, considers it to be too simplistic and an individualistic approach towards public affairs. His definition of laissez-faire is the harmonization of individualism and socialism to allow businesspeople to pursue profit privately. He believed that there should be no interference or intervention by the state. According to Keynes, the economy is prone to instability. Therefore, he recommended that the government should intervene when necessary.

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