When did lassez faire economics fall out of favor?

Question

When and why did lassez faire economics fall out of favor in Western nations? On a side note, doesn't that fall under the ideology of neoliberalsim?

Answer 1

For some, lassez faire economics are still favored. Both Republicans and Libertarians favor a system where the government keeps out of the market (for the most part).

However, I'd say lassez faire economics became less popular during the FDR years. When Roosevelt was in office, he favored a system of social welfare and regulation of the economy. He started social security, attempted to bust some trusts (monopolies) and overall tried to protray an image of protecting the worker.

Why did lassez faire become less popular? Workers were increasingly striking, since they had such little protection. Poverty was increasing, but the top few wealthiest percent of people were getting much richer. Overall, there was a greater demand from the general masses that the government step in and take action to regulate and control the economy, so that more equality of opprotunity and equality of outcome among individuals existed, and it was also thought that greater regulation would help steady the booms and busts that are natural to a capatalist economy.

Answer 2

I don't think it ever was in favor in the sense that any government practiced it. Adam Smith in "Wealth of Nations" wrote in opposition to Mercantilism, but for the most part Mercantilism continued to be an important part of policy in Europe throughout the colonial era. Before Mercantilism was abandoned Communism and Socialism rose as competing systems. The closest the US came was from about 1900 when we stopped being protectionist to 1930 when the social safety net was put in place during the depression. Many economic theorist have always favored it, and still do.

Answer 3

Laissez faire is alive and well in the libertarian camp. Read John Stossel's Myth's, Lies, and Downright Stupidity. Libertarians have elements of democrat and republican mixed together. Like Republican's they favor cutting down on big government, but like Liberals, they favor individual rights, like a women's right to choose, etc.

Answer 4

Why?

“Few men desire liberty. The majority are satisfied with a just master.”
-Gaius Sallustius Crispus (Sallust)
.

Answer 5

who cares.