Assignment question 2
Question 2: By examining Robber Barons such as Vanderbilt, Rockefeller and Carnegie, how could you argue for Laissez Faire Economics and against Laissez Faire Economics?
Laissez-Faire is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. This results in pros and cons of Laissez-Faire leadership. It is effective where group members are highly skilled and motivated, such as scientists and researchers. The downside is its unsuitability in situations where group members lack the knowledge or experience to complete tasks or make decisions. The Laissez-Faire economic policy comes from the French phrase Laissez-Faire meaning "let things alone." As a result, the Laissez-Faire economic policy means a strict free market. Some strengths of this economic policy are there are no regulations or taxation on commerce. This encourages the growth of businesses. However, with this type of economic system if a business does poorly or needs help the government isn't responsible. So, even though the Laissez-Faire economic policy has some good advantages, it also has a major disadvantage. One of the strengths of a Laissez-Faire system is the growth of businesses, as I mentioned in the previous paragraph. With anyone, who has the right requirements, able to start a business the number of products grows. Therefore, the GDP, or gross domestic product, grows, and a growing GDP means a healthy economy. This means more businesses will grow and jobs will become abundant. It's like a cycle. Therefore, the Laissez-Faire economic system has a very positive advantage. The Laissez-Faire economic system was used in the United States in the 1920s. President Coolidge, the President at that time, thought that the Laissez-Faire economic system would benefit the US, and it did. Businesses prospered and, the American people were happy. With shorter working hours and