Final answer:
An outcome of laissez-faire economic policies was that businesses paid workers very little due to a lack of government regulations. Eventually, government intervention increased to address issues like monopolies and poor working conditions.
Step-by-step explanation:
Outcome of Laissez-Faire Economic Policies
One outcome of laissez-faire economic policies was that businesses paid workers very little. Laissez-faire economics, often known as "let it be economics," encourages a market without government intervention. Proponents of this policy argued for a hands-off approach, where private markets are free to operate with minimal interference, leading to a natural cycle of economic booms and busts. However, the absence of regulations led to a rise in monopolistic practices where businesses could prioritize profits over fair wages.
In the era of industrialization in the late 1800s, this resulted in businesses operating without government oversight, exerting their influence to drive down labor costs. As a response to the negative consequences including shrinking competition and poor working conditions, government intervention eventually increased, and laws such as antitrust regulations were introduced to create a balance and protect workers and consumers.