Positive and negative effects of "laissez-faire"
This is what I have so far:
Positive
-more wealth would be distributed among businesses
-industries in Britain earned lots of updated technologies that improved industrial processes
Negative
-workers didn't get to earn much, because the business owners kept their wages low, in order to increase incomes
This is all I have got, right now, If you know more positive effects then please add them in short form, I would like a few negative effects, and I thank you so much for all your help.
Check this site:
http://en.wikipedia.org/wiki/Free_market
http://www.absoluteastronomy.com/topics/Laissez-faire
Positive
-more wealth would be distributed among businesses
-industries in Britain earned lots of updated technologies that improved industrial processes
-spirit of innovation started to spread
-took over a national market for manufactures and consumer goods
-economic growth
Negative
-workers didn't get to earn much, because the business owners kept their wages low, in order to increase incomes
-Taxes have to paid
-inappropriate bias over public goods
-death of many factory and mine workers occured
-suppression of workers occured
-
It was hard for me to understand some information on those two sites, but this is what I have got, please add more, and or make these into shorter form, because to me they seem long, I thank you for all your help.
I'm sure that's enough, Sara.
thanks, I really did put alot of effort in this, it was hard for me to find the main points in those 2 sites, but I did all I could, thanks again.
You're off to a good start with your list of positive and negative effects of laissez-faire. Let's expand on that:
Positive effects of laissez-faire:
1. Economic growth: Laissez-faire policies can lead to increased economic growth, as businesses have the freedom to innovate, expand, and make profits without excessive government intervention or regulations.
2. Efficiency and productivity: With minimal government involvement and regulations, businesses are free to make their own decisions regarding production methods, pricing, and resource allocation. This can lead to increased efficiency and productivity, as businesses have the flexibility to adapt and respond to market demands.
3. Technological advancements: As you mentioned, laissez-faire policies can incentivize businesses to invest in research and development, leading to technological advancements that improve industrial processes and increase productivity.
4. Entrepreneurship and innovation: The freedom to start and operate businesses without excessive government interference can encourage entrepreneurial activities and innovation. Individuals are empowered to take risks and pursue new ideas, which can lead to economic growth and the creation of new industries.
Negative effects of laissez-faire:
1. Social inequality: One of the major criticisms of laissez-faire is that it tends to exacerbate income and wealth disparities. As you mentioned, business owners often have the ability to keep wages low to increase their own profits, resulting in economic inequality and potential exploitation of workers.
2. Market failures: Laissez-faire assumes that markets will self-regulate and correct any imbalances or inefficiencies. However, in reality, markets are not always perfect and can experience failures such as monopolies, externalities, and information asymmetry. These market failures can lead to negative outcomes such as reduced competition, environmental degradation, and consumer exploitation.
3. Lack of social safety nets: Laissez-faire policies generally advocate for limited government intervention, including the provision of social safety nets. This can result in insufficient support for vulnerable individuals, such as the unemployed, elderly, or those with disabilities, leading to social unrest and exacerbating inequality.
4. Economic volatility: In laissez-faire economies, without strong government regulations and oversight, economic booms and busts can be more pronounced. The absence of safeguards and regulations can contribute to market instability, financial crises, and economic recessions.
It's important to note that the effects of laissez-faire policies can vary based on various factors such as the overall economic environment, societal norms, and the degree of government intervention.