What is the role of government intervention in a laissez-faire economic system?

Economics Laissez Faire Questions



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What is the role of government intervention in a laissez-faire economic system?

In a laissez-faire economic system, the role of government intervention is minimal or non-existent. The government's role is limited to protecting property rights, enforcing contracts, and maintaining a legal framework for economic transactions. The government does not interfere with market forces, such as setting prices or controlling production. The belief is that the market will naturally regulate itself through supply and demand, and government intervention can lead to inefficiencies and distortions in the economy.