How does laissez-faire economics impact government spending?

Economics Laissez Faire Questions



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How does laissez-faire economics impact government spending?

Laissez-faire economics advocates for minimal government intervention in the economy. As such, it generally leads to a reduction in government spending. Laissez-faire proponents argue that allowing the free market to operate without excessive regulation and interference will lead to efficient allocation of resources and economic growth. Therefore, they believe that government spending should be limited to essential functions such as national defense, infrastructure, and the protection of property rights. This approach aims to reduce the size and scope of government, allowing individuals and businesses to make their own economic decisions.