What type of capitalism involves competition with minimal government intervention?

Laissez-faire capitalism is characterized by minimal government intervention in economic activities and a high degree of competition among businesses. The term "laissez-faire" translates to "let do" in French, which implies that the government should refrain from interfering in economic matters, allowing the free market to operate without restrictions. This type of capitalism emphasizes individual entrepreneurial freedom and the belief that markets are best regulated through the forces of supply and demand.

In laissez-faire capitalism, businesses operate freely to pursue their interests, and the government's role is limited to protecting property rights and maintaining order. This system supports the notion that economic success arises through competition, where the market rewards efficiency and innovation without external constraints from government regulation.

In contrast, regulated capitalism involves some level of government intervention to correct market failures and promote social welfare. State capitalism grants significant control to the state over economic activity, while social capitalism combines free market principles with social policies aimed at addressing inequalities and supporting public welfare. These other forms recognize the necessity for governmental influence in economic matters, which sets them apart from the laissez-faire model.