Laissez-Faire §

• Laissez-Faire Economy
  • is an economic theory from the 18th century that opposed any government intervention in business affairs.
  • It advocate a free market, if the government let the buyers and sellers do trade without limitation, the market will self-regulate and get better on its own.
  • The market shaped by competition and supply & demand and tend to shift towards its equilibrium.
• Laissez-Faire Balance of Power (1648-1790)
  • European state system achieved a balance of power between themselves in an equilibrium
    • Prevent any state from becoming a hegemony
  • It became a norm for format of balance of power to create stability