The Benefits of a Laissez-Faire Economic System

The Industrial Revolution was a landmark in the history of human beings; it expanded upon technological, cultural, scientific and economic advancements. One of the economic paradigms the Industrial Revolution introduced was Scientific Socialism, a system based on equal rights and fair pay, this ideology was to be used to end the exploitation of the lower class by the bourgeoisie resulting in a more traditional and moral economic structure. Another paradigm that was popularized during The Industrial Revolution was Laissez-Faire economics, a system that ensured the government would refrain from creating policies to restrict the free market.

Laissez-Faire economics was based on pure profit and efficiency and disregards the idea of tradition and morality in economics. Laissez-Faire economics is clearly a much more efficient economic paradigm. As it insured rapid human growth and advancements higher quality products would also be made as the owners could decide where to use their assets. Furthermore, as the free market expands the economy and gross domestic production rate follow suit.

A vast reason Laissez Faire Economics is the most efficient economic paradigm is that it boosts advancements in technology and efficiency. This was because the amount and speed of production were never to be meddled with, This style of economics was structured around the way nature operates; the strong thrive while the weak wither. Therefore, forcing the weaker factories or workers to increase productivity, cut costs and disregard morals to achieve utmost success and gain by means of creating innovations and specializing jobs. Innovations such as the cotton gin, which was a tool used to separate cotton from its plant, and its sharp claws endangered the hands of slave workers across the United States but provided one of the highest levels of efficiency.

Get quality help now

WriterBelle

Verified

Proficient in: Economics

4.7 (657)

“ Really polite, and a great writer! Task done as described and better, responded to all my questions promptly too! ”

+84 relevant experts are online

Hire writer

Another aspect Laissez-Faire economics encouraged was child labour; children were often used in mines since their small structured bodies could get to hard-to-reach places.

If government stepped in to regulate wages, work hours or safety it would cause a decrease in the true potential of an industry. Laissez-Faire economics would also provide a healthy economy with steady inflation rates; this would be because if wages were increased owners would have to increase prices to be able to afford to pay their employees, Higher prices would also mean there would be a less competitive market thus resulting in people losing jobs. As the free market expanded, so would human growth, since there would be a surplus of many things. Surpluses would guarantee well made goods be distributed at a lower price, which would in turn decrease the cost while increasing the standard of living. With a higher standard of living, population would surely grow increasingly resulting in rapid population growth which would make even more people work and the competitiveness would keep rising until it could no more.

At the peak of this competitive nature society would function almost perfectly with a few easy to solve problems. Also as a result of Laissez-Faire economics, higher quality products and goods could also be sold, since it would let an owner have control of where to spend their assets The market would be based on pure profit and people in the same industries would compete regularly with each other over how well their product is made and how affordable it is This competition would make higher quality goods more affordable and available to the less wealthy. Therefore, increasing the overall standard of living of the entire population, Increases in living conditions means people work harder and put more effort in their work. Higher quality products being made cheap in Britain could also mean more revenue and sales in trades to other countries, these sales and trading opportunities would structuralize the friendship of Britain with other European powers providing a stronger and more united Europe.

Another considerable reason a free market is a great idea is that it expeditiously boosts the economy by creating more jobs inside Britain and increasing the production rate which generously expands the GDP. As owners have control over wages they can employ more people at lower costs which means there will be a decrease in unemployment rates and the extra jobs created make the economy flourish. More people employed mixed with the greater productivity rate would mean more things could be built in Britain and would therefore positively affect the nation’s gross domestic product. This rapid rise was seen in Britain in the middle of the British Industrial Revolution, the GDP per capita in 1800 was around 12,000 pounds, this increased to 50,000 per capita in 1840 and 100,000 per capita in the early 1870’s. The rise became steadier and although there was still an increase it rose much slower due to the introduction of labour unions If labour unions were never legalized there would have been a big chance that Britain’s GDP could have easily been the highest in the world right now.