Nama : Alya Nuraliza

NIM : 041790331

TUGAS 3 Bahas Inggris Niaga

 Topic : The principles of Laissez-Faire are not valid anymore in this present
time.

 Opening Paragraph: What Is Laissez-Faire?

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.

 Content Paragraph : Legend has it that the origins of the phrase "laissez-
faire" in an economic context came from a 1681 meeting between the
French finance minister Jean-Baptise Colbert and a businessman named Le
Gendre. As the story goes, Colbert asked Le Gendre how best the
government could help commerce, to which Le Gendre replied "Laissez-
nous faire" – basically, "Let us do (it)." The Physiocrats popularized the
phrase, using it to name their core economic doctrine.
Unfortunately, an early effort to test laissez-faire theories did not go
well. As an experiment in 1774, Turgot, Louis XVI's Controller-General of
Finances, abolished all restraints on the heavily controlled grain industry,
allowing imports and exports between provinces to operate as a free trade
system. But when poor harvests caused scarcities, prices shot through the
roof; merchants ended up hoarding supplies or selling grain in strategic
areas, even outside the country for better profit, while thousands of French
citizens starved. Riots ensued for several months. In the middle of 1775,
 order was restored—and with it, government controls over the grain
market.

 Closing Paragraph : Despite this inauspicious start, laissez-faire practices,

developed further by such British economists as Smith and David Ricardo,
ruled during the Industrial Revolution of the late 18th and early 19th
century. And, as its detractors noted, it did result in unsafe working
conditions and large wealth gaps. Only in the beginning of the 20th century
did developed industrialized nations like the U.S. begin to implement
significant government controls and regulations to protect workers from
hazardous conditions and consumers from unfair business practices—
though it’s important to note that these policies were not intended to
restrict business practices and competition.