The paper "Laissez-Faire Capitalism" is a great example of a finance and accounting assignment. The economic rationale for laissez-faire has been able to show its historical basis in the political production of a particular social pattern. Legal scholars of the precedent few years tremendously supported supplementary government directive and additional authority for the courts, partially in order to be in charge of businesses for ecological and other motives, but more generally in hopes of accomplishing egalitarian results along the well-known lines of race, status and rank. AIM OF THE PAPER In this paper, I will analyze the extent to which laissez-faire Capitalism is compatible with justice. BACKGROUND Economists are never as confident or as dogmatic as when they are giving advice to developing countries.
From the World Bank and the International Monetary Fund, to say nothing of Washington's think tanks, pour forth the encyclicals and injunctions: Open your markets to foreign capital and goods. Respect intellectual property rights. Pay your debts. Deregulate your domestic markets. Dismantle your state planning agencies and trust in the benevolence of the invisible hand. This advice has only one disadvantage: it doesn't work and never has.
No country that has successfully developed has ever followed this path. Countries that eschew the laws of laissez-faire perform demonstrably better than countries that embrace it (Marshall, 2000). This has been true from the start of the Industrial Revolution, and it is true today. DISCUSSION Even nineteenth-century Britain and America, portrayed in economic lore as the most virtuous laissez-faire of rising economies, were never free traders. Britain developed its infant industries behind the walls of high tariffs and a tight technical embargo. It was illegal to export blueprints of textile machinery.
Britain did not begin to embrace the god of the invisible hand until its own industries had achieved technological supremacy. Moreover, the peoples of the industrializing European countries were actually resisting the logic of the market and tried to limit its sway from the very beginning at the end of the 18th century. Thus, despite the dangers to the material reproduction of society, its members sought to limit the market mechanism through state measures to protect them against the ravages of the self-regulating market (Polanyi, 2003).
Hettne, "The International Political Economy of Transformation", in Bjorn Hettne (ed.), International Political Economy: Understanding Global Disorder (London and New Jersey: Zed Books, 2001);
Lacher, "Embedded Liberalism, Disembedded Markets: Reconceptualising the Pax Americana", New Political Economy, Vol. 4, No. 3, 1999.
Marshall, "Citizenship and Social Class", reprinted in T.H. Marshall, Class, Citizenship and Social Development (Westport, CT: Greenwood Press, 2000).
Polanyi, "Obsolete Market Mentality", op. cit., p. 64. Cf. James Ronald Stanfield, The Economic Thought of Karl Polanyi: Lives and Livelihood (London: Macmillan, 2003 revised edition), pp. 58-60.