Definition: A "laissez-faire economy" is a type of economic system where the government has very little control over businesses and the economy. Instead, the market—meaning buyers and sellers—decides how much things cost (prices), what is produced (goods), and how resources are used. The phrase "laissez-faire" comes from French and means "let do" or "let it be," which suggests that things should be allowed to happen naturally without interference.
A "laissez-faire economy" is characterized by minimal government involvement, allowing the market to dictate prices and resources.