The theory that government should not intere in economic affairs means what?

Answer 1

laissez-faire which in French means "allow to do".

The idea is that the economy can regulate itself sufficiently well (that is come to supply/demand price equilibrium) such that the government need not step in. In practice, however, there are times when governments must step in to resolve economic problems. For example, during periods of economic slowdown, government policies that promote consumer demand can help start the economic engines again. Governments can also help small start-up industries through subsidies and protectionist policies.

But policies which over-burden businesses, such as those that create high costs of production or high taxes, may make businesses less competitive. Those in favor of a laissez-faire approach believe that government's sole role is to provide a stable monetary supply and to make sure that the playing field is fair. "Fair" means that private property is protected, that contracts are legal, that infrastructure such as highways and bridges are kept in good shape, and that external threats (such as from terrorism) are addressed.

As you can probably guess, those who believe in the tenets of laissez-fair policies tend to be Conservative. But even Liberals are largely in favor of laissez-faire.

One of the big sticking points between Democrats and Republicans has been the issue of labor rights. Republicans have tended to side with businesses and have argued that contractual rights deem it inappropriate for government to become involved in labor disputes. But nowadays workers have the right to protest pay and working conditions, and labor unions are legal. Republicans have argued that empowering labor unions too much will cause businesses to lose productivity, because workers will demand too much pay and benefits. Democrats counter that workers are more productive when they have fair pay and access to health care. Regardless, many companies have decided to move their facilities overseas in order to cut their labor costs.

Answer 2

Means that the government should stay out of business, and limit their involvement through regulations and laws.

Answer 3

laissez-faire,

that's not what we have today