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Laissez-faire (/ˌlɛseɪˈfɛər/ LESS-ay-FAIR; or /lɑːˌsɛzˈfɛ.jər/, from French: laissez faire [lɛse fɛːʁ] , lit. 'let do') is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, laissez-faire rests on the following axioms: "the individual is the basic unit in society, i.e., the standard of measurement in social calculus; the individual has a natural right to freedom; and the physical order of nature is a harmonious and self-regulating system."[1] The original phrase was laissez faire, laissez passer, with the second part meaning "let (things) pass". It is generally attributed to Vincent de Gournay.[2]
Another basic principle of laissez-faire holds that markets should naturally be competitive, a rule that the early advocates of laissez-faire always emphasized.[1]
The Physiocrats were early advocates of laissez-faire and advocated for a impôt unique, a tax on land rent to replace the "monstrous and crippling network of taxation that had grown up in 17th century France".[3] Their view was that only land should be taxed because land is not produced but a naturally existing resource, meaning a tax on it wouldn't be taking from the labour of the taxed, unlike most other taxes.[4][clarification needed]
Proponents of laissez-faire argue for a near complete separation of government from the economic sector.[5][verification needed] The phrase laissez-faire is part of a larger French phrase and literally translates to "let [it/them] do", but in this context the phrase usually means to "let it be" and in expression "laid back".[6] Although never practiced with full consistency, laissez-faire capitalism emerged in the mid-18th century and was further popularized by Adam Smith's book The Wealth of Nations.[7][8]
- ^ a b Cite error: The named reference
Gaspard, Toufick 2004was invoked but never defined (see the help page). - ^ Ellen Judy Wilson; Peter Hanns Reill (1 August 2004). Encyclopedia Of The Enlightenment. Infobase Publishing. p. 241. ISBN 978-0-8160-5335-3. Archived from the original on 23 July 2023. Retrieved 21 July 2012.
- ^ Rothbard, Murray (1995). An Austrian Perspective on the History of Economic Thought. Edward Elgar Publishing. p. 371. ISBN 0-945466-48-X.
- ^ Gaffney, Mason. "The Taxable Surplus of Land: Measuring, Guarding and Gathering It". Archived from the original on 10 May 2015. Retrieved 9 December 2014.
- ^ Quick Reference Handbook Set, Basic Knowledge and Modern Technology (revised) by Edward H. Litchfield, PhD
- ^ "Laissez-faire" Archived 2015-09-27 at the Wayback Machine, Business Dictionary.
- ^ Edward H. Litchfield. "Quick Reference Handbook Set, Basic Knowledge and Modern Technology" (revised ed.).
- ^ "Adam Smith". Encyclopædia Britannica. Archived from the original on 12 April 2020. Retrieved 12 April 2020.