Laissez-faire
Topic: The Age of Industrialisation · NCERT: Beyond NCERT
Meaning
Laissez-faire is a French phrase meaning "let them do" or "leave alone". It is the economic idea that governments should not control trade and industry. Instead, they should let markets work freely. The idea is linked with Adam Smith's book The Wealth of Nations (1776). Smith argued that when people follow their own self-interest in free markets, the whole society becomes more prosperous. It became a guiding belief of industrial Britain in the 19th century.
Example
In 1846, Britain repealed the Corn Laws, which had put duties on imported grain. Supporters of free trade saw the repeal as a win for laissez-faire.
Don't confuse with
- Mercantilism: the earlier policy in which the state tightly controlled trade, used tariffs and gave monopolies to build up national wealth. Laissez-faire was a reaction against it.