Literally, leave to do. A policy of complete non-intervention by government in the economy, leaving the outcome to be determined by the market. If there was no market failure then laissez-faire would ensure the attainment of economic efficiency. It would not necessarily secure a distribution of welfare that possessed any desirable properties. The existence of market failure provides justification for government intervention to enhance efficiency, and concern for equity motivates government intervention to secure redistribution. Either form of intervention represents a move away from laissez-faire. See also minimal state.