Laissez-Faire in American History: Origins and Influences
Laissez-faire, a French term meaning “let them do [what they will],” is an economic doctrine that advocates for minimal government intervention in the economy. This doctrine gained prominence in America during the 19th century, particularly during the Gilded Age.
Origins of Laissez-Faire
The origins of laissez-faire can be traced back to 18th-century France. Scottish economist Adam Smith’s influential work, “The Wealth of Nations,” emphasized the benefits of free and competitive markets (Khan Academy, n.d.).
Growth of Laissez-Faire in America
Laissez-faire policies gained traction in America during the Gilded Age, a period of rapid industrialization and economic growth. The failures of government-subsidized businesses, such as fur-trading companies and railroad companies, contributed to the belief in the superiority of private enterprise (StudySmarter, n.d.).
Influence of European Economists
The works of European economists, including Adam Smith and John Stuart Mill, played a significant role in shaping American economic thought. Mill’s “Principles of Political Economy” (1848) further developed the arguments for limited government intervention (StudySmarter, n.d.).
Presidents and Laissez-Faire
Presidents during the Gilded Age, such as Ulysses Grant and Grover Cleveland, embraced laissez-faire policies. Grant abolished federal income tax in 1872, and Cleveland vetoed government aid programs, advocating for private assistance instead (StudySmarter, n.d.).
Conclusion
Laissez-faire became a dominant economic philosophy in America during the Gilded Age. Its origins can be traced to 18th-century European economic thought and were reinforced by the failures of government-subsidized businesses. Presidents during this period generally supported laissez-faire policies, which emphasized minimal government intervention and the promotion of free markets.
References
- Khan Academy. (n.d.). Laissez-faire policies in the Gilded Age. https://www.khanacademy.org/humanities/us-history/the-gilded-age/gilded-age/a/laissez-faire-policies-in-the-gilded-age
- StudySmarter. (n.d.). Laissez-faire in American history. https://www.studysmarter.co.uk/explanations/history/emergence-of-usa-as-a-world-power/laissez-faire-in-american-history/
FAQs
When did laissez-faire start in America?
Laissez-faire policies gained prominence in America during the 19th century, particularly during the Gilded Age (1870s-early 1900s).
What is the origin of laissez-faire?
The doctrine of laissez-faire originated in 18th-century France, influenced by the writings of economists like Adam Smith.
What factors contributed to the growth of laissez-faire in America?
The failures of government-subsidized businesses and the influence of European economic thought, particularly the works of Adam Smith and John Stuart Mill, contributed to the growth of laissez-faire in America.
Which presidents supported laissez-faire policies?
Presidents during the Gilded Age, such as Ulysses Grant and Grover Cleveland, generally embraced laissez-faire policies.
What were the key principles of laissez-faire?
Laissez-faire emphasizes minimal government intervention in the economy, free markets, and private enterprise.
What were the consequences of laissez-faire policies in America?
Laissez-faire policies led to rapid economic growth during the Gilded Age but also contributed to wealth inequality and social problems.
When did laissez-faire decline in America?
Laissez-faire policies began to decline in the early 20th century with the rise of the Progressive Era and the Great Depression, which led to increased government intervention in the economy.
Is laissez-faire still relevant today?
Laissez-faire remains an influential economic philosophy, although the extent of government intervention in the economy varies depending on the country and political climate.