Laissez-Faire Economics in History

The video explores the concept of laissez-faire economics, emphasizing minimal government interference in economic activities. It traces its origins to 18th-century French physiocrats and its development into a key principle of classical economics by figures like Adam Smith. The 19th century saw its influence in British politics, promoting free trade. In the 20th century, laissez-faire was often associated with monopolies and economic cycles, contrasting with Keynesian interventionist policies. However, the inefficiencies of state intervention led to a resurgence of laissez-faire principles in the 1980s under leaders like Reagan and Thatcher.

What is the main idea behind laissez-faire economics?

• Economies thrive under strict government control.

• The economy functions best with minimal government interference.

• Government should own all major industries.

• Government should heavily regulate the economy.

Which group in the 18th century is associated with the origins of laissez-faire?

• American industrialists

• French physiocrats

• German philosophers

• British economists

In the 19th century, laissez-faire inspired which political movement in Britain?

• The abolition of slavery

• The repeal of the corn laws and promotion of free trade

• The movement for universal suffrage

• The establishment of the welfare state

How was laissez-faire viewed in the 20th century?

• As a means to promote environmental sustainability

• As a strategy for government intervention

• As a way to ensure economic equality

• As a method to support monopolies and economic instability

Which leaders in the 1980s emphasized laissez-faire policies?

• Mikhail Gorbachev and Deng Xiaoping

• John F. Kennedy and Lyndon B. Johnson

• Winston Churchill and Franklin D. Roosevelt

• Ronald Reagan and Margaret Thatcher