The principle of laissez fare advocates that the government should not participate in the economic activities rather should be in management of law and order in the society. During the Great recession of 1936, Lord Maynard Keynes stated that the principle of laissez faire is the cause of the recession. He advocated that government should participate in economic activities to avoid such recession in the future. The government will buy the excesses in the economy and produce the shortages for the economy according to him.