EconLearn
AP Micro & MacroEconomic Systems & Schools of Thought

Laissez-Faire

Laissez-faire is the principle that the economy works best with minimal government intervention in markets.

From the French for 'let do,' it holds that free competition and the price mechanism allocate resources efficiently without state interference. It is associated with classical economics and Adam Smith's invisible hand.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.