Origin of the Term “Laissez Faire”
The term “laissez faire” emerged from a meeting around 1681 between Jean-Baptiste Colbert, the French Controller-General of Finances, and French businessmen (Merriam-Webster). When Colbert inquired about how the French state could support merchants and commerce, M. Le Gendre, a businessman, responded with “Laissez-nous faire” (“Leave it to us” or “Let us do [it]”).
Meaning and Doctrine
In French, “laissez faire” translates to “allow to do” or “let do” (Britannica). It represents a policy or doctrine that advocates for minimal governmental interference in economic activities. Laissez-faire proponents believe that individuals pursuing their self-interests will lead to the overall benefit of society, without the need for extensive government regulation or intervention.
Association with Physiocrats
The doctrine of laissez-faire is closely associated with the Physiocrats, a group of economists active in France from approximately 1756 to 1778 (Britannica). The Physiocrats believed in minimal government intervention in economic matters and argued for a natural order in which individuals pursuing their self-interests would contribute to the general good.
Popularization
The term “laissez faire” gained popularity in English-speaking countries through the dissemination of Physiocratic literature in the late 18th century (Britannica). It was further popularized by economists like Adam Smith, who advocated for free markets and limited government intervention in his influential work “The Wealth of Nations.”
Key Facts
- Origin: The term “laissez faire” was likely first used in a meeting around 1681 between Jean-Baptiste Colbert, the powerful French Controller-General of Finances, and a group of French businessmen. When asked how the French state could assist the merchants and promote commerce, one of the businessmen, M. Le Gendre, replied with “Laissez-nous faire,” which translates to “Leave it to us” or “Let us do [it]”.
- Meaning: In French, “laissez faire” means “allow to do” or “let do.” It is a policy or doctrine that advocates for minimal governmental interference in economic affairs.
- Association with Physiocrats: The doctrine of laissez-faire is often associated with the Physiocrats, a group of economists who were prominent in France from about 1756 to 1778. The Physiocrats believed in minimal government intervention in economic matters and argued for a natural order in which individuals pursuing their self-interests would contribute to the general good.
- Popularization: The term “laissez faire” gained popularity in English-speaking countries through the spread of Physiocratic literature in the late 18th century. It was further popularized by economists like Adam Smith, who advocated for free markets and limited government intervention in his book “The Wealth of Nations”.
References:
- Britannica, The Editors of Encyclopedia. “Laissez-faire.” Encyclopedia Britannica, https://www.britannica.com/money/laissez-faire. Accessed 20 February 2023.
- Merriam-Webster. “Laissez-faire.” Merriam-Webster.com Dictionary, https://www.merriam-webster.com/dictionary/laissez-faire. Accessed 20 February 2023.
FAQs
What is the meaning of “laissez faire”?
Laissez faire is a French term that means “allow to do” or “let do.” It is a policy or doctrine that advocates for minimal governmental interference in economic activities.
Where did the term “laissez faire” come from?
The term “laissez faire” likely originated in a meeting around 1681 between Jean-Baptiste Colbert, the powerful French Controller-General of Finances, and a group of French businessmen. When asked how the French state could assist the merchants and promote commerce, one of the businessmen, M. Le Gendre, replied with “Laissez-nous faire,” which translates to “Leave it to us” or “Let us do it.”
Who is associated with the term “laissez faire”?
The term “laissez faire” is often associated with the Physiocrats, a group of economists who were prominent in France from about 1756 to 1778. The Physiocrats believed in minimal government intervention in economic matters and argued for a natural order in which individuals pursuing their self-interests would contribute to the general good.
How did the term “laissez faire” become popular?
The term “laissez faire” gained popularity in English-speaking countries through the spread of Physiocratic literature in the late 18th century. It was further popularized by economists like Adam Smith, who advocated for free markets and limited government intervention in his book “The Wealth of Nations”.
Is “laissez faire” still a relevant concept today?
The concept of laissez faire has been debated and reinterpreted over time. While it is not as widely accepted as it once was, some economists and policymakers continue to advocate for free markets and limited government intervention.