The laissez faire is an economic doctrine that opposes governmental regulation of or interference in commerce beyond the minimum necessary for a free-enterprise system to operate according to its own economic laws. From the years of 1865 to 1900, the United States government clearly violated and interrupted the principles of the laissez faire through railroad land grants, control of interstate commerce, and antitrust activities.
During the 1800’s, the federal government issued railroad land grants while the dispersing tax money, which was encouraged by the idea of laissez faire. Land grants were awarded to companies who were willing to build railroads in uninhabited areas. This way, instead of the government constructing railroads, the government would reward these companies financially if they would build railroads in specific areas. The national government would reward the companies financially mostly through land grants, but also through federal subsidies and cash grants. The national government did what’s best for the people by allowing economic growth in areas that were not economically attractive. The decision of the federal government to hand out economic incentives does go with the idealogy of laissez faire, even though the railroads took advantage of the land grants, the American people also did.
The Term Paper on U.S. Government Grants to Native Americans
This paper discusses some of the issues surrounding the grant process with regard to Native Americans. It also discusses Native American issues with regard to politics and legislation.U.S. Government Grants to Native AmericansIIntroductionThe history of the U.S. government's involvement with the indigenous people of the nation is a sorry one indeed. In the push West, an entire culture was ...
Since the national government was handing out large amounts of land grants, large amounts of monopolies were forming. With the monopolies came many problems including price discrimination. The railroads were privately owned, making the railroad companies almost a complete monopoly. These monopolies were viewed as harmful to the American people because they obstructed competition and the people demanded that the railroad operations be regulated. In the 1886 Wabash case, the Supreme Court ended an Illinois law outlawing long and short haul discrimination, with this case the Supreme Court established the exclusive power of Congress to regulate interstate commerce. As a result, Congress passed the Interstate Commerce Act of 1887.
This act set guidelines for the railroads for how they could do business. It required “just and reasonable” rate changes, prohibited special rates or rebates for individual shippers, forbade long and short haul discrimination, prohibited pooling of traffic or markets, and established a five member Interstate Commerce Commission. During the time period of 1865 through 1900, the federal government violated the principles of laissez faire in the form of control of interstate commerce. Even though the government was trying to help the American people, the federal government did interfere in commerce beyond the minimum necessary, making them violate the laissez faire.
During the late nineteenth century, many Americans were against trusts that were basically monopolies taking advantage of the consumers. Tycoons like Andrew Carnegie, John D. Rockefeller, and J. Pierpont Morgan succeeded by eliminating their competition through trusts and monopolies. To create more efficient businesses, these men created forms or vertical and horizontal organization and created trusts. In an effort to stop these trusts and other restraints of trade, Congress passed the Sherman Antitrust Act in 1890. This act was thought to end all competition, but became a huge failure.
The Essay on Indian Removal Act of 1830: Native American Perspective
The year was 1838; more than six hundred wagons loaded with Cherokee Indians were hauled into the west in the cold October rain. They were forced to leave their homes and everything they held dear and were accustomed to their entire lives. The removal of Native Americans from their lands by the Indian Removal Act of 1830 violated their political, legal, and human rights.Taking away freedom and ...
The act states that were dismissed because the trusts had to have a monopoly of one hundred percent. Almost all large companies knew that in order for them to not break this law they needed some competition, as a result most companies kept small amounts of competitions so they wouldn’t be considered a complete monopoly. The Sherman Antitrust Act worked for the companies, but worked completely against the labor unions. Many times, the government ended up prosecuting Unions because they restrained trade whenever workers would go on strike, breaking the Sherman Antitrust Act. Passing the Sherman Antitrust Act, the federal government was completely not following the principles of laissez faire during the late nineteenth century.
During 1865 through 1900, the federal government of the United States violated the principle of laissez faire, specifically through railroad land grants, control of interstate commerce, and antitrust activities. Although the federal government attempted to do what was best for America and with support of the American people, they were against the principles of the laissez faire. any conspiracy or combination in restraint of trade is illegal. At first this looks great, but it proves to be used unexpectedly. Most companies that were brought to court by this actBailey, Thomas A., Kennedy, David M.. The American Pageant. Tenth Edition. Lexington, MA. 1994.
