What economic philosophy advocates for minimal government intervention in economic affairs?

Laissez-faire is the economic philosophy that promotes minimal government intervention in economic affairs. This approach emphasizes that free markets and natural competition efficiently allocate resources and drive economic growth without the need for government regulation. By advocating for limited government involvement, laissez-faire theory suggests that individuals and businesses should operate freely in their commercial activities, leading to innovation and increased productivity. This principle has historically been associated with capitalist economies, where the markets are largely left to operate on their own, guided by supply and demand.

In contrast, socialism seeks greater government involvement and redistribution of resources to promote social welfare, and communism advocates for a system where property is owned communally and the state typically takes a central role in controlling economic activity. Capitalism, while it allows for free-market principles, can still incorporate varying degrees of government regulation, which distinguishes it from the pure laissez-faire concept.