Laissez faire

Written by Fmi.Online Friday January 6, 2023
Laissez faire is a term that means “allow to do”. In other words, it means to allow some room for non-strictly-supervised activities.

Explanation :

  The term was first coined in France and it means “allow to do” or “leave it be”. The idea behind this term is mostly applied to the field of economics. It is one of the principles that support the free market system and theory. This concept was mostly supported by Jean-Baptiste Colbert and Dr. Francois Quesnay and it backs the idea that the market works more efficiently when the government leaves some room to market participants to interact between each other without strict supervision. This idea was also backed by Adam Smith, the father of classical economics. He stated that the market was able to self-regulate through supply and demand interactions and he recommended low government participation to increase productivity and economic development. The concept of laissez faire can also be applied to leadership. In this case, by allowing individuals to have some freedom to act and make decisions, this principle predicts a better outcome than if the leader micro-manages strictly each of the activities being performed.

In a nutshell :

  • Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention.
  • The theory of laissez-faire was developed by the French Physiocrats during the 18th century and believes that economic success is more likely the less governments are involved in business.
  • Later free-market economists built on the ideas of laissez-faire as a path to economic prosperity, though detractors have criticized it for promoting inequality.
top-arrow
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled