Nama : Diah Rai Wardhani

NIM : 042452646
Prodi : S1 Akuntansi

Tugas Tutorial 3
Bahasa Inggris Niaga

Topic B:
The principles of Laissez-Faire are not valid anymore in this present time. Do you agree or
disagree to the statement?

Laissez-faire is an economic theory that is strongly opposed to any government

intervention in economic activities. It is a belief that an economy functions best when there
is no interference by government. It was developed by the French Physiocrats during the
18th century.

Principles of laissez-faire are not valid anymore at this present time. In todays modern
economy, government have a very important role. Government involved in economic
activity by collecting taxes, giving subsidy, creating market regulations, and taking fiscal and
monetary policy to manage the economic stability, combat market inequity, promote
economic fairness, and maximize social welfare.

It is impossible for a country to implement laissez-faire in this present time. One of the
reasons is because of the tax system. The government will not be able to operate if they do
not have any revenue sources, that mostly comes from taxes. Even the free-market
capitalist economy such as United States still need some government intervention in their
economy. The 2008 financial crisis in the USA is one of the examples of economic disaster
that can happen if the market is given too much freedom, with minimum government
regulations.

The conclusion is I do agree with the statement. Principles of laissez-faire are not valid
anymore at this present time because the government have really important role in the
economy and it is impossible for a country to run their economy without government
intervention.

Reference:
Sonnenshein, Michael. 2021. "Laissez-Faire". accessed May 24, 2021,https://www.
investopedia.com/terms/l/laissezfaire.asp