Great Depression: The severe economic downturn that occurred worldwide during the 1930s, which exposed the limitations of laissez-faire policies and prompted governments to intervene more actively in their economies.
Capitalism: An economic system characterized by private ownership of resources and businesses, where individuals pursue their own self-interests through voluntary transactions in a mostly unregulated marketplace.
Adam Smith: A Scottish economist who advocated for free markets and wrote "The Wealth of Nations," which became influential in promoting laissez-faire economics.