LAISSEZ-FAIRE, la'sa' far (Fr., let du), LAISSEZ-PASSER, Fr., let go on). As originally used, the first of these phrases rep resents a demand for freedom from re strictions in production. the second for freedom of exchange. Under the Mercantile System in dustry and commerce were subject to a mass of regulations which hampered the individual even in matters of trifling importance. A reaction in thought set in against this excessive regulation. culminating in the laissez-faire teachings of the Physiocrats (q.v.). The expression laissez-faire is said to have been employed before 1680 by Legendre, a merchant, in a reply to a question of Colbert concerning the needs of industry. The idea appears more definitely worked out in the writings of Boisguillebert (1712), and as early as 1735 the Marquis WArgenson had declared that Laissez-faire should be the watchword of every public power. "To govern better, it is necessary to govern less," he writes. The view did not become common until the latter half of the eighteenth century. The maxim laissez- faire et laissez-passcr appears to have been popu larized by Gournay, to whom it was attributed until within recent years.
The doctrine secured a wide following both in France and in other European countries. In England Adam Smith and the whole English classical school of political economy manifest its influence. The French classical economists were
likewise champions of laissez-faire; and numer ous followers appeared in Germany. ln the latter half of the nineteenth century the doctrine of laissez-faire lost ground, however. The Ger man school of economics, which emphasized the importance of the economic functions of govern ment, seemed for a time to have completely over thrown the older doctrine. A reaction has, how ever, set in which promises to restore to favor a modified form of the principle of laissez-faire.
Adherents of the theory have never stood for the view that the individual should be left free to do as he pleases in other matters than trade and industry. The doctrine is not one of an archy, as it has been made out to be by its op ponents. Nor does it deny that government has certain economic functions to perform; although, indeed, au obscure follower of Bentham, Sir J. Downing, attempted to show that political econ omy looks for nothing from the State except security for industry. The adherents of the would, as a rule, agree that the State should perform those functions which cannot he adequately performed by individuals; they would also leave to the State functions which primarily redound to the public good. See FREE