TUGAS TUTORIAL KE-3

PROGRAM STUDI BAHASA INGGRIS NIAGA

SEMESTER : 2020/21.2

Answer :

Laissez-faire is an economic theory from the 18th century that opposed any
government intervention in business affairs. The driving principle behind laissez-
faire, a French term that translates as "leave alone" (literally, "let you do"), is that
the less the government is involved in the economy, the better off business will
be—and by extension, society as a whole. Laissez-faire economics are a key part
of free market capitalism.
The underlying beliefs that make up the fundamentals of laissez-faire economics
include, first and foremost, economic competition constitutes a "natural order" that
rules the world. Because this natural self-regulation is the best type of regulation,
laissez-faire economists argue that there is no need for business and industrial
affairs to be complicated by government intervention. As a result, they oppose any
sort of federal involvement in the economy, which includes any type of legislation
or oversight; they are against minimum wages, duties, trade restrictions, and
corporate taxes. In fact, laissez-faire economists see such taxes as a penalty for
production.

Explanation :

I agree with the statement because in this time Laissez-Faire are not valid.
However, in the other hand, it produces any government regulation or policy that
limits international trade, income inequality and failure to represent the interests of
the entire society. Therefore, Laissez-faire alone is not enough to guide an
economy, but with a proper balance between the power given to the government
and freedom of market forces, economies can flourish with minimized risks.