How far was the government laissez-faire

Created by: lucywedge16
Created on: 15-12-20 14:02


	How far was the government laissez-faire
	Similarities Proponents of laissez-faire were especially concerned with “liberty of contract,” or the rights of businesses and workers to agree to a labor contract under any terms. The Supreme Court adopted this reasoning to overturn state laws that instituted minimum wages, maximum working hours, or safe working conditions. State regulations, as well as labor unions, according to the Court, interfered with the rights of citizens to negotiate their own labor contracts. the panic of 1873 and 1893, government left banking system unregulated, didn't help the unemployed, kept to a gold standard, even repealing the Sherman Silver Purchase Act (1890) as Cleveland believed was prime cause for economic instability despite needing inflation trusts and corporations largely unregulated. Sherman Anti-trust Act (1890), claimed 'every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states or with foreign nations... is illegal'. Was cynical, ambiguous phrasing enabled conservative-dominated courts to reduce effectiveness. I.E. United States v E.C.Knight Co (1895)- defendants controlled 98% manufactured refined sugar, SC held was not violation of Sherman as manufacturing was not 'trade' within the meaning of the law. Interstate Commerce Act (1887), created interstate commerce commission, by 1890 supervision became largely nominal as SC reversed many of the commission's decisions. Should be up to railroads to decide their rates, charges e.t.c Pullman Strike Act (1894), illegally obstructed the delivery of the United States mail, rail owners enlisted the support of US President Grover Cleveland. Cleveland dispatched troops to Chicago, protect the US Mail, and an injunction was issued against the union. Debs and other strike leaders were imprisoned when they refused to abide by the court-ordered injunction and call off the strike. The injunction was upheld by the courts, and the strike was ended by late July. The federal government—had sided with employers in a labor-management dispute.4	Differences helped with the building of the Trans-Atlantic railroad to integrate a national market. The Pacific Railway Act of 1864 which granted companies constructing the first transcontinental lines 20 square miles of land for every mile of completed rail track. In total some 130 million acres were given to railroad companies. This was a massive subsidy without which the railroads could not have been built. New railroads required more iron and steel, which stimulated these industries as well as coal mining. new industrial companies required protection from more established foreign competitors such as those in the UK. Thus Republican governments imposed high tariffs on industrial imports throughout this period. The currency policy of the government affected industrialisation. Late nineteenth century government listened more to the financial interests of the East in following a sound money policy which helped enable imports of foreign capital, especially British, to build the factories which were the essence of industrialisation. The Act to Encourage Immigration (1864) which legalised and beuracratized a practice similar to indentured servitude to stop labour shortages. Repealed in 1868. Importing labour already under contact was not made illegal until 1885 with the Passage of the Foran Act,mainly symbolic rather than enforceable legislation. after panic of 1907, American banking system seen as fundamentally flawed, needed currency to have more elasticity created the Federal Reserve Board in 1913, first step in creating a centralised more secure banking system.
	Overall comparison Laissez faire means limited government intervention in the economy, leaving the private sector, individual enterprise and the profit motive to ensure supplies of goods and services. Breaking up strikes, letting the economy fall into a cycle of boom and bust, leaving trusts unregulated and not interferring with min wage, max hours and working conditions all examples of laissez-faire. However, the gov: giving massive subsidy without which railroads could not have been built, protectionist tariffs, the currency policy not getting inflation were largely non laissez-faire.

How far was the government laissez-faire

Similarities

Proponents of laissez-faire were especially concerned with “liberty of contract,” or the rights of businesses and workers to agree to a labor contract under any terms. The Supreme Court adopted this reasoning to overturn state laws that instituted minimum wages, maximum working hours, or safe working conditions. State regulations, as well as labor unions, according to the Court, interfered with the rights of citizens to negotiate their own labor contracts.
the panic of 1873 and 1893, government left banking system unregulated, didn't help the unemployed, kept to a gold standard, even repealing the Sherman Silver Purchase Act (1890) as Cleveland believed was prime cause for economic instability despite needing inflation
trusts and corporations largely unregulated. Sherman Anti-trust Act (1890), claimed 'every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states or with foreign nations... is illegal'. Was cynical, ambiguous phrasing enabled conservative-dominated courts to reduce effectiveness. I.E. United States v E.C.Knight Co (1895)- defendants controlled 98% manufactured refined sugar, SC held was not violation of Sherman as manufacturing was not 'trade' within the meaning of the law.
Interstate Commerce Act (1887), created interstate commerce commission, by 1890 supervision became largely nominal as SC reversed many of the commission's decisions. Should be up to railroads to decide their rates, charges e.t.c
Pullman Strike Act (1894), illegally obstructed the delivery of the United States mail, rail owners enlisted the support of US President Grover Cleveland. Cleveland dispatched troops to Chicago, protect the US Mail, and an injunction was issued against the union. Debs and other strike leaders were imprisoned when they refused to abide by the court-ordered injunction and call off the strike. The injunction was upheld by the courts, and the strike was ended by late July. The federal government—had sided with employers in a labor-management dispute.4

Differences

helped with the building of the Trans-Atlantic railroad to integrate a national market. The Pacific Railway Act of 1864 which granted companies constructing the first transcontinental lines 20 square miles of land for every mile of completed rail track. In total some 130 million acres were given to railroad companies. This was a massive subsidy without which the railroads could not have been built. New railroads required more iron and steel, which stimulated these industries as well as coal mining.
new industrial companies required protection from more established foreign competitors such as those in the UK. Thus Republican governments imposed high tariffs on industrial imports throughout this period.
The currency policy of the government affected industrialisation. Late nineteenth century government listened more to the financial interests of the East in following a sound money policy which helped enable imports of foreign capital, especially British, to build the factories which were the essence of industrialisation.
The Act to Encourage Immigration (1864) which legalised and beuracratized a practice similar to indentured servitude to stop labour shortages. Repealed in 1868. Importing labour already under contact was not made illegal until 1885 with the Passage of the Foran Act,mainly symbolic rather than enforceable legislation.
after panic of 1907, American banking system seen as fundamentally flawed, needed currency to have more elasticity created the Federal Reserve Board in 1913, first step in creating a centralised more secure banking system.

Overall comparison

Laissez faire means limited government intervention in the economy, leaving the private sector, individual enterprise and the profit motive to ensure supplies of goods and services. Breaking up strikes, letting the economy fall into a cycle of boom and bust, leaving trusts unregulated and not interferring with min wage, max hours and working conditions all examples of laissez-faire. However, the gov: giving massive subsidy without which railroads could not have been built, protectionist tariffs, the currency policy not getting inflation were largely non laissez-faire.

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How far was the government laissez-faire