Which economic principle advocates for minimal government intervention in the market?

The principle that advocates for minimal government intervention in the market is Laissez-faire. This economic philosophy originates from the belief that economic freedom leads to more efficient and effective markets. Laissez-faire argues that when individuals and businesses operate with as little government regulation as possible, it encourages competition, innovation, and economic growth. In essence, supporters of this ideology trust that the invisible hand of the market, as described by thinkers like Adam Smith, will guide resources to their most efficient uses through individual self-interest.

In contrast, socialism emphasizes significant government control and intervention to achieve social and economic equality, while mercantilism historically focused on the accumulation of wealth through government regulation of the economy, mainly in trade policies. Capitalism, although related to free market principles, can sometimes involve varying degrees of government involvement, especially in regulatory functions, which distinguishes it from the strict hands-off approach of Laissez-faire. Thus, Laissez-faire fully embodies the idea of minimal intervention, making it the correct answer.