A New Reason for "Hands-Off" Government

Previous Justification for Laissez-Faire Government

Adam Smith, 'Father of Economics'

"Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things."
                                                                                 - Adam Smith, economist

• Adam Smith was a supporter of  laissez-faire, or "hands off" government and used economics to defend his way of thinking
• He said the government shouldn't interfere in economics because individuals know what is best for their business and themselves and that if the government didn't get involved in the economy, no person would be in a position of control

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New "Scientific" Justification for Laissez-Faire Government

• Economists used the new theory of Social Darwinism to justify laissez-faire government
• Businesses didn't need government involvement because they would evolve on their own 
• People thought that helping the poor would worsen the economy (See diagram)

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