Jerry Vester, age 16, of Longview, Wash., for his question:

WHAT IS LAISSEZ FAIRE?

Laissez faire in economics is the policy of domestic nonintervention by government in individual or industrial monetary affairs. The word is French and it means "let things alone."

The doctrine of laissez faire favors capitalist self interest, competition and natural consumer preferences as forces leading to optimal prosperity and freedom. It arose in the late 18th Century as a strong liberal reaction to trade taxation and nationalistic governmental control known as mercantilism.

The most important and influential proponent of laissez faire capitalism was the 18th Century British economist Adam Smith, who believed that individual welfare was more important than national power. In his book "The Wealth of Nations" (1776) he advocated a policy of free trade so the "invisible hand" of competition could act as an economic regulator.

State economic restraints and the growth of socialism in the 20th Century have not eradicated the basic individualistic appeal of the laissez faire philosophy. It still exists today in the emphasis placed on the profit motive and on individual initiative in economic progress.