Laissez-faire is a French term that means "allow to do" or "leave alone". It is a policy of minimum governmental interference in the economic affairs of individuals and society. The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The belief in laissez-faire was a popular view during the 19th century, and its proponents cited the assumption in classical economics of a natural economic order as support for their faith in unregulated individual activity. The function of the state was to maintain order and security and to avoid interference with the initiative of individuals in pursuit of their own desired goals.

In modern economics, laissez-faire typically has a bad connotation, which hints towards a perceived need for restraint due to social needs and securities that cannot be adequately responded to by companies with just a motive for profit. The concept of laissez-faire in economics is a staple of free-market capitalism, and it suggests that an economy is strongest when the government stays out of the economy entirely, letting market forces behave naturally. In laissez-faire policy, the governments role is to protect the rights of the individual, rather than regulating business in any way. The term "laissez-faire" is often associated with Libertarian views on the economy, where the government plays an extremely limited role in the economy.

Guiding principles of laissez-faire capitalism include the following: the individual is societys basic unit, everyone carries a natural right to personal freedom, and nature is capable of self-regulation. Based on these principles, laissez-faire economics endorse a system of capitalism, in which private parties control the means of production.

Laissez-faire is not only an economic doctrine but also a political one. The pervading theory of the 19th century was that individuals, pursuing their own desired ends, would thereby achieve the best results for the society of which they were part. The function of the state was to maintain order and security and to avoid interference with the initiative of individuals in pursuit of their own desired goals.

In summary, laissez-faire is a policy of minimum governmental interference in the economic affairs of individuals and society. It is associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The belief in laissez-faire was a popular view during the 19th century, and its proponents cited the assumption in classical economics of a natural economic order as support for their faith in unregulated individual activity.