The Planned vs Laissez-faire axis asks how much the government should direct the economy: through plans, regulation and support for industries, or by leaving markets to work on their own.
The government should guide the economy through planning, regulation and intervention.
Markets should be left largely free of government direction, with prices set by supply and demand.
The question this axis asks: Should government steer the economy, or should markets decide?
The government should plan key parts of the economy instead of leaving them to the market.
Nothing is sent anywhere.
The question this axis asks
Should government steer the economy, or should markets decide?
This axis covers regulation, price controls, minimum wages, subsidies, industrial policy and economic planning. It asks about the amount of government direction, not about who owns the firms.
People on the Planned side argue that markets fail without guidance, for example on pollution, monopolies or essential goods. People on the Laissez-faire side argue that decentralized markets use information better than any planner and that intervention causes distortion.
Neither side is better or worse. They are different answers to the same question.
The government should guide the economy through planning, regulation and intervention.
Typical positions
Markets should be left largely free of government direction, with prices set by supply and demand.
Typical positions
Scores run from 0% to 100% toward Laissez-faire. Here is how to read them.
| Score | What it suggests |
|---|---|
| 0–15% | Very strongly Planned |
| 16–30% | Strongly Planned |
| 31–43% | Leaning Planned |
| 44–56% | Near the middle |
| 57–69% | Leaning Laissez-faire |
| 70–84% | Strongly Laissez-faire |
| 85–100% | Very strongly Laissez-faire |
A middle score suggests you want markets to do most of the work, with rules and selective support from government.
Economic freedom indexes rank places such as Singapore, Switzerland and New Zealand as highly market-oriented, while countries such as China and, in some periods, France and Argentina have used more state direction. Most countries combine market competition with significant regulation. Estimated profiles of countries and ideologies at each end of this axis.
North Korea97% toward Planned
Cuba94% toward Planned
Eritrea92% toward Planned
Venezuela78% toward Planned
Turkmenistan78% toward Planned
Georgia82% toward Laissez-faire
Switzerland78% toward Laissez-faire
Estonia78% toward Laissez-faire
Singapore78% toward Laissez-faire
New Zealand74% toward Laissez-faireThese are editorial estimates for discussion, not rankings of quality.
Words you may meet in the test statements about this axis.
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Three statements show one axis. The full test scores every axis and finds your closest countries and ideologies.