My opinion about “The principles of Laissez-Faire should be implemented to protect national

economy”

By : Pupung Bagus Kuncoro

Laissez-Faire is an economic system in which good business is a business that does not get
intervention from the government of a country. This system is closely related to the market system
of capitalism. This system certainly raises a lot of pros and cons from economists. Those pro with
Laissez-Faire oppose any sort of federal involvement in the economy, which includes any type of
legislation or oversight; they are against minimum wages , duties, trade restrictions, and corporate
taxes. Laissez-faire economists see such taxes as a penalty for production. While those who are
against Laissez-Faire think that this system will widen the economic gap between the people.

In my opinion, Laissez-Faire is an ideal system for people with middle-upper income economies.
They have the capacity and ability to dominate the economy with all the resources they have. Of
course this is inversely proportional to the economic situation of the lower class. They will suffer
even more with this policy. Imagine if a country abolishes regulations regarding the provision of
minimum wages for workers, of course the workers will be the most disadvantaged and helpless
parties. They have no other choice but to continue working for the upper classes who already have
capital, both facilities and infrastructure. Therefore the Laissez-Faire system is not suitable for
protecting the national economy. This will actually cause the economy of a country to be chaotic and
will have an impact on other aspects such as social, political to defense and security.

In conclusion, Laissez-Faire will only benefit one party, and the other party will be greatly harmed.
Therefore, even countries with liberalism still have regulations to regulate economic activities in
their countries. Laissez-Faire is not the answer to protecting a country's national economy.

Reference : Chappelow, Jim. “Laissez-Faire.” Investopedia, updated January 28, 2021.

https://www.investopedia.com/terms/l/laissezfaire.asp