What is the relationship between laissez-faire economics and capitalism?

Economics Laissez Faire Questions



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What is the relationship between laissez-faire economics and capitalism?

Laissez-faire economics and capitalism are closely related as laissez-faire is an economic philosophy that advocates for minimal government intervention in the economy, allowing individuals and businesses to freely pursue their own self-interests. Capitalism, on the other hand, is an economic system characterized by private ownership of resources and the means of production, where individuals and businesses operate in a competitive market to maximize profits. Laissez-faire economics is often seen as the guiding principle of capitalism, as it promotes free markets, limited government regulation, and individual economic freedom.