Reference no: EM133182857
Question: Read the two paragraphs below and give a short review on both the paragraphs individually and please go beyond agreeing with the paragraphs and share reasons for your point of view
Paragraph 1: Laissez-Faire is a French phrase for letting it be or what shall be shall be. This means there should be no outside interference. In my head, I associate it with the survival of the fittest for the economies. The reason is that companies are allowed to gain wealth with no interference from the government and the small business would never be able to flourish or sustain themselves. An example of what current The United States has laws to help promote a Laissez-Faire economy which include: protecting innovation as property, free enterprise, and freedom of choice, protecting private property and protecting people from unreasonable search, protecting ownership of private property, prohibiting the state from taking away property without due process of law, and there is a limit in the government's power to interfere with rights not expressly outlined in the constitution. This is to protect an individual's rights and not intervene in the economy. There is a key to protecting the economy in some view as a Laissez-Faire is a free market. I think the United States is not ideal but it's not achievable without someone or thing being affected. There would be a lot of risk for a country to start an economy this way because there would also be a fear of monopolies. We already struggle with companies taking over smaller companies and having to be approved by the government. A large merger that recently occurred was T-mobile buying Sprint. There are very limited phone companies with similar coverage including Verizon and AT&T. These mergers must be approved so they don't become monopolies by the government. This would limit the choices of the people and give companies control on how much to charge us. There would be no competitive rates, but it would be in line with Laissez-Faire.
Paragraph 2: Laissez-faire capitalism is a free-market economy that opposes government intervention. Laissez-faire was developed in the 18th century by French physiocrats. By the belief of economic success is done by less government involvement. Laissez-faire economic system is the most effective in the government that needs quick growth by individuals. Success all depends on the success of each company, there isn't any help given by the government. For example, if a pandemic happens in a Laissez-faire system there isn't any grants or stimulus packages given out to keep company afloat.
So, that being said it answers that question that the US doesn't use a Laissez-faire capitalism system. The US uses a mixed economy, using different characteristics from capitalism and socialism. This embraces economic freedom, but also allows government involvement to help the public.
Moving on, I think that Laissez-faire capitalism doesn't have a even playing field. Without government help the companies with the most money/startup will be the most successful. Companies that have little start up need to be very successful to start to stay afloat. Investors and loans become a huge factor in the early success of your company which isn't fair to every company. I think to be fair; companies need to be put in soften categories for evaluation on net worth or assets. After that is done, they need to set a benchmark on certain amount of financial help each company needs to succeed. After each company is given a specific amount, it is up to them for success.