Exceptions to the Principle of Laissez Faire

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QUESTION 1:
The Laissez Faire Principle
Laissez faire principle was an economic principle that was coined by a Frenchman. It is a French word which translates to “leave alone” and states that government non-interference in the economy is necessary for businesses to perform effectively, efficiently and optimally (Gibson, 2011). Subsequently, optimal performance of the economy will lead to a better society. It’s predicated on the fundamental principles of free market capitalism which advocates for individual accumulation of wealth, as opposed to the sociologist ideology of economic collectivism. In a nutshell, Laissez fair is a capitalist maxim that advocates for free market economics stating that optimal efficiency is a necessary function and a derivative of government non-interference in the running of the economy (Gibson, 2011). The principle was proposed by a French economist Dr. Quesnay who opined that businesses should be left alone to the market forces of demand and supply which is important for self-regulation in aspects such as commodity pricing and employment. As such, the principle proposes non-interference by government beyond taxation, which is necessary for production efficiency. Laissez faire became popular during the great depression where it was used to effect public policy. The great depression necessitated governments to devise economic policies aimed at controlling production, efficiency and protection of both consumers and employers from exploitation (Gibson, 2011).
John Stuart Mill accepted the Laissez faire maxim because evidently, the authoritative government intervention was poised to fail as compared to the non-authoritative one (Mill, 2011). This is premised on the fact that authoritative governance required a much stronger necessity to legitimize, notwithstanding the fact that it had excluded a vast majority of the people it represented. Additionally, Stuart argued that every subsequent increase in government functions would lead to increase in the government power, both in form of authority and influence. Drawing on the British example, he argued that limitation of the powers of any legitimate government is required for not only for purposes of representing the people but to also act as a class or amalgamation of classes (Mill, 2011). In such a case, he argued that the powers of the government would be that of a nation governing itself. A third objection to government interference is that it is premised on the doctrine of division of labor, arguing that every additional mandate charged upon the government is an additional role vested upon an institution that already has predefined functions (Mill, 1965). Subsequently, he argued that this eventually leads to poor performance, and sometimes non-performance of the government’s core functions. Still, when the government performs these duties, there would be delays which can be disastrous and fatally consequential. He opines that when the government undertakes the agency role, the outcome is a shoddy job, negligence, postponement or focus on functions that have no direct impact on the people whose power they exercise (Mill, 2011). As a result, government officers ...