Questions and Answers
What is Laissez-faire Capitalism?
What are the pros of Laissez-faire Capitalism?
Businesses can grow faster without costs of government regulation.
What are the cons of Laissez-faire Capitalism?
Employees can be exploited without government regulations.
How were working conditions as a result of Laissez-faire?
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What happened to children as a result of Laissez-faire?
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How were workers affected by Laissez-faire?
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What happened to smaller companies as a result of Laissez-faire?
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Study Notes
Laissez-faire Capitalism Overview
- Economic model characterized by minimal government intervention in the market.
- Decisions regarding production and consumption are made solely by producers and consumers.
Advantages of Laissez-faire Capitalism
- Eliminates costs associated with government regulation, allowing for rapid business growth.
- Encourages innovation due to competition and market freedom.
Disadvantages of Laissez-faire Capitalism
- Lack of government regulation can lead to exploitation of employees.
- Safety and working conditions may deteriorate without oversight.
Impact on Working Conditions
- Work environments frequently unsafe, with dangerous practices common.
- Unsanitary conditions prevail, impacting worker health and productivity.
Child Labor Issues
- Children were often exploited, subjected to harsh labor practices due to lack of regulation.
- Child labor was permissible, leading to widespread abuse in workplaces.
Worker Treatment
- Workers faced underpayment and excessive hours, compromising their quality of life.
- Overwork and undercompensation led to widespread dissatisfaction among labor forces.
Market Dynamics
- Larger companies predominated the market, driving smaller businesses out.
- Formation of monopolies hindered competition and innovation, reducing consumer choices.
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Description
Explore the key concepts of laissez-faire capitalism with these flashcards. Learn about the advantages and disadvantages of this free market approach where government interference is minimal. Perfect for students looking to understand economic principles.
