To let people do what they want without governmental or other "interference".
Usage: Until the 1880s, the U.S. government basically had a laissez-faire economic policy.
a laid-back attitude
Literally "let do" from French. While having several meanings and connotations, laissez-faire also refers to a special economic policy that was popularized during the Enlightenment by the famous Scottish thinker Adam Smith. According to it, trade should be left with no external interference by the government as opposed to the policy of mercantilism.