What term describes the economic philosophy that advocates minimal government intervention in markets?

The term that describes the economic philosophy advocating minimal government intervention in markets is Laissez-faire economics. This approach is rooted in the belief that free markets, driven by supply and demand, will allocate resources more efficiently than if they were influenced by government policies. Supporters of laissez-faire argue that government interference distorts natural economic processes, leading to inefficiencies and market failures.

Historically, this philosophy became prominent during the Industrial Revolution and was championed by economists like Adam Smith, who argued that the "invisible hand" of the market would lead to greater prosperity than regulatory measures could achieve. Laissez-faire promotes individual entrepreneurial freedom and suggests that competition itself will keep prices down and improve quality.

Welfare capitalism, socialism, and a mixed economy each involve varying degrees of government intervention, thus contrasting with the principles of laissez-faire. Welfare capitalism supports a market-driven economy that also includes social welfare policies. Socialism primarily advocates for extensive government control over the means of production, contrasting sharply with laissez-faire principles. A mixed economy incorporates elements of both free markets and government intervention, which further diverges from the laissez-faire approach that seeks to minimize government involvement altogether.