What is the cost of Laissez-faire?

What is the cost of Laissez-faire?


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Lassez-faire  is The theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs.  

In the early American Industrial age of the later 1800s and early 1900s, the government did not care about businesses and working conditions as long as they were making money.  Child labor, poor working conditions, long hours and low pay helped owners make big profit.  Owners wanted just to make money.  This hands off policy by the government resulted in weak democracy for workers.   Ordinary working people did not have any power; owners had all the power.  People had to create a labor union to fight for power.  The time period in the early 1900s from Teddy Roosevelt to Woodrow Wilson was known as the “Progressive Era” because American society was making progress towards better equality.  Throughout the 1920s workers continued fighting for their rights while the owners continued getting wealthy. a turning point came when the stock market crashed in October 1929

After blaming Republican President Herbert Hoover for the Great Depression because he did too little too late, Americans decided to try President F.D.R.  The Democratic  NEW DEAL of government to bring everybody jobs had three “R”s: RELIEF, RECOVERY,and REFOPRM.   . The new deal was meant to provide relief, reforms, and recovery efforts including the Agriculture Adjustment Act of 1938. Also the new deal improved the labor unions, provided jobs for the unemployed and brought the poor and elderly Social Security.  The great  depression helped workers to get rights because it allowed the government to create jobs. This ended the Lassez-faire policy of government and business.  Since the time of F.D.R. and World War II the Government has been more involved in regulating business for the greater good of all citizens.