Date: 2009-06-20 02:09 pm (UTC)
Jacobs wasn't exactly pro-laissez faire as you describe it, though she was very fond of trade as a major source of innovation and (on the small scale) connection.

If she said anything explicit about theoretical limits of government, I can't think of it. Her orientation was more about identifying the livelier parts of society, and arguing that it's crucial not to squelch them. When she was writing, big government plans were the most serious threat.

Some of her views were unique (which doesn't mean I have a strong opinion about whether they were right or wrong). She believed that each city should have its own currency and that governments shouldn't cover more than one city.
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