Research Paper on:
Laissez Faire and its Development

Unformatted Sample Text from the Research Paper:
meaning of the term. In both economics and in politics the meaning of the term is the same, meaning that there should not be any governmental interference (Nellis and Parker,  2000). The basic belief that underlies this paradigm is that there is a natural economic order, and that if the economy is left alone, without interference such as regulation or  artificial stimulation, then there will be a balance reached which will be best for the community as a whole (Nellis and Parker, 2000). When we consider the policies and the  doctrines that are manifest in laissez faire they are a reaction against the system of mercantilism that was in existence prior to capitalism. Mercantilism was a system of trade that  served, through various regulations and controls, had the role of strengthening the position and power of the nation state. This was especially true where there was international trade. The  measures included many different taxes and traffics that are found in paternalistic states. The result of these different taxes was felt very heavily by the merchants that were attempting to  trade, and may also be seen as a rising class, and wanting to increase their own riches, this was the main motivation for the expansion; trade with the colonies, and  those that undertook the trade wished to see the profit from their efforts, and resent much of this being taken in taxes. It was as a result of  these feelings that the French pioneer economists, the physiocrats, developed the theory of laissez faire. This was the eighteenth century, the concept of no state interference was popular as  well as radical. When we look to the teachings of Adam Smith we also see that he was in favour of laissez faire, and as the grandfather of British economics