laissez-faire

laissez-faire In economics, the doctrine that an economic system functions best when self-interest and the profit motive are allowed free reign without the interference of government. French physiocrats developed the concept in the 18th century, in reaction to the dominant mercantilism. Adam Smith adopted the doctrine, arguing that free trade and competition were the basis of a healthy economy. John Stuart Mill and Jeremy Bentham developed Smith's ideas into the philosophy of utilitarianism. In the 1840s, Richard Cobden and John Bright formed the ‘Manchester school’ that secured the repeal of the Corn Laws. In the 20th century, the development of monopoly capitalism led to state intervention to protect competition. In the 1930s, John Maynard Keynes promoted the intervention of government to fight against unemployment and guard against recession.