laissez-faire

The term laissez faire is French for "leave to do," or more accurately, "leave to be." It was first coined by French economic theorists Dr. Francois Quesnay and the Marquis de Mirabeau.

The philosophy behind laissez faire economics was first expressed by Scottish economist Adam Smith in his 1776 classic The Wealth of Nations. Smith posited that the forces of supply and demand allow a market economy to self-regulate and that price levels, wages and employment are automatically adjusted by an "invisible hand." Consequently, governments have no reason to and should not interfere by imposing tariffs and minimum-wage restrictions. Beyond the taxes necessary for ensuring public well-being, such constraints foster only inefficiency and unnecessarily inhibit production.