61.4k views
2 votes
How did laissez faire economics promote industrialization wikipedia?

User Calculus
by
6.1k points

2 Answers

1 vote

Final answer:

Laissez-faire economics promoted industrialization by encouraging competition and innovation through minimal government intervention. However, this approach also led to the rise of monopolies, necessitating government regulation.

Step-by-step explanation:

Laissez-faire economics, which advocates for minimal government intervention in the economy, played a significant role in promoting industrialization. By allowing private markets to operate freely, the laissez-faire approach encouraged competition and innovation, leading to increased industrial growth. For example, in the late 1800s in the U.S., the government adopted a laissez-faire policy that allowed businesses to operate without many regulations. However, this also resulted in the rise of monopolies, which led to the need for government regulation to ensure fair competition and protect consumers.

User YosiFZ
by
7.1k points
3 votes
Laissez-faire economics helped the country industrialize. Supporters of Laissez-faire believe that government should not interfere in the economy other than protect property rights and maintain peace.
User Hsuan Lee
by
6.1k points