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

Economics Laissez Faire Questions



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

In a laissez-faire economic system, the role of government regulation is minimal or non-existent. Laissez-faire, which means "let it be" in French, advocates for limited government intervention in the economy. The belief is that markets should be allowed to operate freely without government interference. Therefore, government regulation is generally limited to protecting property rights, enforcing contracts, and maintaining a legal framework for economic transactions. The idea is that competition and market forces will regulate the economy more efficiently than government intervention.