Final answer:
The term 'laissez-faire' refers to an economic policy where business owners have the freedom to set working conditions without government interference, which emphasizes minimal governance in economic affairs. This policy was prominent during U.S. industrialization but later led to increased regulation to protect competition and consumers.
Step-by-step explanation:
The term laissez-faire refers to the economic policy of letting owners of industry and business set working conditions without interference. Laissez-faire economics the theory that market forces alone should drive the economy and that governments should refrain from direct intervention in or moderation of the economic system. The concept dates back to the French finance minister Jean-Baptiste Colbert's encounter with business owners, one notably named Thomas Le Gendre, who asked for the government to 'let us do it' or 'Laissez nous faire', signifying the desire for minimal government involvement in business. The approach became predominant in the late 1800s during U.S. industrialization, leading to a surge in unregulated business practices. However, by the early 20th century, the lack of government oversight was seen to impact competition and public welfare negatively, prompting regulatory changes under President Theodore Roosevelt to ensure fair practices and consumer protection.