This chapter covers: strong belief among economists in the merit of laissez faire, during the nineteenth century; intolerance for government interference; countries’ unification and its impact on the government’s economic role; use of import duties during laissez faire; the impact of the Industrial Revolution on government policies; the growth of urbanization and fall in rural societies; workers become more organized and more unionized; the growth of negative externalities and need for regulations and for taxes to deal with them; the growth of equity concerns while a new rich bourgeoisie comes into existence with the Industrial Revolution, the new rich form a new class and replace the old nobles; the rise of large monopolies and of some very rich individuals while workers’ wages remain low, and working conditions remain poor; socialist views become more popular and strikes more frequent; they also become more violent; and the decline of extended rural-based families creates the need for alternative safety nets.