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Tuesday, September 1, 1981

Laissez Faire


In eighteenth-century France the saying laissez faire [let people do or make what they choose] and laissez passer [let pass or go] was the formula into which some of the champions of the cause of liberty compressed their program.

Laissez faire does not mean: Let soulless mechanical forces operate. It means: Let each individual choose how he wants to cooperate in the social division of labor; let the consumers determine what the entrepreneurs should produce.

Planning means: Let the government alone choose and enforce its rulings by the apparatus of coercion and compulsion.

The alternative is not between a dead mechanism or a rigid automatism on one hand and conscious planning on the other hand. The question is whose planning?


  • Ludwig von Mises (1881-1973) taught in Vienna and New York and served as a close adviser to the Foundation for Economic Education. He is considered the leading theorist of the Austrian School of the 20th century.