Name : Ongki Putra Utama

NIM : 041133869

Semesters : 3 (Tiga)

Title : Discussions 6 (Bahasa Inggris Niaga)

Faculty of : Economy Management

1. What does “Laissez-Faire” mean?

Laissez-faire is a political ideological concept that rejects the practice of
government intervention in the economy. This term, in French, means "leave us alone".
The reason for the rejection is because the state is seen as an obstacle to economic growth
and development.
Laissez-faire is an economic theory from the 18th century that opposed any
government intervention in business affairs. Laissez-faire is an economic philosophy of
free market capitalism. The theory of laissez-faire was developed by the French
Physiocrats during the 18th century. Later free market economists built on the ideas of
laissez-faire as a path to economic prosperity, though detractors have criticized it for
promoting inequality.

2. How is “Laissez-Faire” still relevant today? What are the weaknesses of “Laissez-
Faire”?

Market mechanisms work to determine the most efficient allocation of

resources. Price becomes a signal for supply and demand in the market. Changes in
supply and demand will eventually lead to equilibrium, the point at which social
benefits are maximum. Laissez-faire raises two main problems in the economy:
Increasing income inequality The common or common interest is neglected.

3. Do you think government’s supervision in economic activities should be significant?