I don't consider laissez faire the best economic system. Indeed, in this case the economy would suffer and only large businesses would prosper. Laissez-faire is an economic theory that states that there is an invisible hand guiding the economy, so government involvement is not necessary. The Invisible Hand refers to uncontrolled competition, with greed as the main factor, in fact it is considered by some to be the purest form of competition because laissez-faire is basically the economic version of Darwin's theory of survival of the fittest. Whoever has the best will prevails, at least in theory. The theory states that the economy is capable of being its own guardian. An example of this is when two companies produce similar products. Laissez-faire assumes that every company will start making better and cheaper products to outperform the competition and make more profits. By doing so, they will satisfy society's need for that product. Companies do not produce products out of social responsibility or as a result of some sort of government involvement. Their only motivation is money, yet they continue to produce higher quality products at a lower price, which is beneficial to consumers. I think the government should have a limited role in the economy, it should regulate it just enough to keep it stable. In laissez faire, big business is basically allowed to do whatever they want, short of murder without any legal consequences. If large businesses are allowed to grow unrestricted, they will most likely do so until monopolies are the only form of business left. If this were to happen, there is nothing to stop these monopolies from taking advantage of consumers who, in the end, would have no choice but to s...... middle of paper ...... people where they suffer. The government began to take measures to revive the economy, one of which was the New Deal. He sought to stimulate demand and provide jobs and relief to the poor through increased government spending. Institute regulations that would end what was called “cutthroat competition” in which large operators allegedly used predatory pricing to drive out small operators. He also created regulations that would raise the wages of common workers, to redistribute wealth so more people could buy products. This is something that goes directly against laissez faire, so in a laissez faire society the government would do nothing and just watch people suffer. What the government did corresponded more to Keynes's theory that the government should increase spending to help the economy. This is exactly what they did to recover from the Great Depression.