Which economic theory advocates minimal government interference in business affairs?

Laissez-faire is an economic theory that promotes minimal government interference in business affairs and emphasizes the importance of free markets. The term, which is French for "let do" or "let go," suggests that economic success is best achieved when individuals and businesses operate without excessive regulations or government intervention. Proponents of laissez-faire argue that when businesses are free to operate independently, they are more likely to innovate, become competitive, and respond effectively to consumer demands.

In the context of the Industrial Revolution, this theory aligned with the rise of capitalist economies where industrialists sought to maximize profits through less regulation. Laissez-faire economics contributed to significant growth and expansion in various industries during this period, allowing for increased production and technological advancements.

Other theories such as socialism advocate for government control over key industries, whereas mercantilism focuses on strengthening a nation's economy by regulating trade and accumulating wealth, often through government intervention. Interventionism, on the other hand, involves the deliberate actions of the government to influence economic activity, which fundamentally contrasts with the principles of laissez-faire.