ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

What is Laiserz Faire? Three economic issues

Updated on May 28, 2016

Let’s take an overview of the entire human history. It turns out to be much poorer than conventionally imagined. Millions of years have passed since Darwin’s famous homosapiens began to learn how to speak and walk on foot to raise in its ever-growing brain the ambition to be the supreme master. Thousands of years have elapsed since human invented love, war and art. However, the changes just started to occur nearly 100,000 years ago while the profound changes happened less than 5-6 thousand years ago. This means that human history remained almost in blank for millions of years.

Alvin Tofler illustrates the theory by dividing the latest 50,000 years of mankind’s history into 800 life-phases of each 62 years and notes that only in the latest 70 life-phases, information could be handed down from the formers to the later life-phases by the use of script. Just in the latest six life-phases, print was invented. Only in the latest four life-phases, time could be measured with precision. In the last two life-phases, electric appliances could be used. The majority of goods we are using today have been developed during the 800th life-phase which is not yet completed.

Goods are the production of market economy. What is market economy? It is an economic system that is controlled mainly by the market. In such an economic system, price is determined by the supply and demand relationship, by enterprises which have the right to freely decide what, how and for whom goods are produced to gain maximum profits.

Adam Smith (1723-1790), with the book “The wealth of nations”, laid the foundation of the theory of Laiserz Faire. The theory comprises of some main contents as follows:

  1. Individuals and enterprises all have rational attitudes to consumption and production. They always seek for individual profits and aim for maximizing their profits.
  2. The general administration of the economy is guaranteed by an invisible hand which arranges and combines the activities of individuals. That hand is the agency which implements a natural command mentioned in the laws of the market.
  3. The market is the driving factor to regulate the market. Demand for and supply of goods, labor and capitals will intersect to determine the equilibrium price: good price, wage or rate of returns.
  4. In the markets, exchanges are implemented by means of money.
  5. According to the theory of the so-called neoclassicists, it is necessary to attach great importance to utility value and its impact on price and the quantity of goods. Besides, they also emphasize the theory of marginal value, specifically the consequences by introducing an additional unit into an available process.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)