Question

Why did people want the government to go back to a laissez faire approach to the economy?

1) To promote free market competition
2) To reduce government intervention in the economy
3) To allow businesses to operate without restrictions
4) To encourage economic growth and innovation

Answer 1

People desired a laissez-faire approach to the economy to enhance free market competition, reduce regulations, encourage business freedom, and foster economic growth and innovation . All the given options are correct

Step-by-step explanation:

People wanted the government to return to a laissez-faire approach to the economy to promote free market competition, reduce government intervention, allow businesses to operate without restrictions, and encourage economic growth and innovation.

Historically, laissez-faire philosophy emerged amidst the practical necessities of global empires and the industrialization period in the U.S., where it was seen as essential for economic efficiency. However, the negative consequences of minimal regulation, such as monopolies and unfair labor practices, led to increased calls for government intervention.

By the 1930s, debates continued about the most effective role of government in the economy, but free-market advocates largely believed that any economic downturns would self-correct without government interference, pushing the economy towards periods of growth and innovation.