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Government Attempts to Regulate Business and Unfair Business
Transcript of Government Attempts to Regulate Business and Unfair Business
Test Yourself: Quiz Time!
Read the following questions carefully and reply with full analysis. Answers may vary but you must be able to justify your position.
1) In the late 19th century, do you believe the intervention of large business and corporate leaders in the government was helpful or detrimental towards the overall development of the country?
2) Prior to the late 19th century and the Civil War, do you think American economy was more stable being agriculturally based or as it was with corporations?
3) If you were a political leader, would it be more beneficial personally to take part of a bribe, and would you do it? Think about the effects of doing so on the American community.
The Major Leaders in Business and Banking!
Government Regulation Attempts
Along with attempts to regulate those businesses, there were also many unfair business practices. One of which was seen in the case of Daniel Drew, Gould, and Fisk when they cornered nations gold supply. They had convinced President Grant to appoint Daniel Butterfield to treasury and then bribed Butterfield into conspiracy shortly after. Bribery was definitely a corrupt and unfair practice done by some businessmen and the government. Some other unfair businesses included combining competing companies into large firms and using trusts to reduce competition.
Sources: By the People textbook
Impact of Regulatory Attempts
The Interstate Commerce Act was the first successful attempt in federally regulating industry in America. It impacted businesses in that it set a model for future regulatory legislation, meaning more restrictions for them. For this act, the railroad industry was especially impacted because the rates had to be set, and must be fair, not empowering the governments fixed amount. As for the government, this act gave some more federal power to them, allowing them to regulate part of the railroad industry. The Sherman Anti-Trust Act had impacted the businesses in that it limited certain business activities, and gave the federal government some more power over them and gave them the power to regulate. As for the minor regulation attempt of Blue Laws, those impacted the people more in that businesses were closed on Sundays, causing them to have a day without earning any money, but also allowing more time for religion.
Links to Other Periods
In the late 19th century, the government's attempt to regulate the businesses was really different from the time period where John Adams was president. John Adams was the only federalist president, but in his view, there needed to be a national bank, and the federal power was more overpowering than businesses. Thus during his time period, the government already regulated the businesses, unlike how in the late 19th century where the government was partially run by the major businessmen and they did not have control over the laws of the businesses. Before this time period, the economy was more free enterprise without all of the monopoly and trusts that was prominent in the late 19th century. In the time before, the difference was also that the American economy was more agricultural with slaves rather than industrial, so the people then needed slaves more than corporations (in which all changed because of the Civil War).
Government Attempts to Regulate Business and Unfair Business Practices
The government attempted to regulate businesses for a few reasons. First off, unfair business practices led to government regulation of businesses during the Gilded Ages.
Some of the government regulation attempts are:
The Interstate Commerce Act of 1887
– This was the federal law (also a form of the government attempting to regulate corporations) that was designed to regulate the railroad industry, especially regulating the way corporations practiced monopolistic business ways. This law required reasonable and just rates on the railroads without empowering the government’s fixed rates. The Act was the first federal law to regulate private industry in the United States.
Sherman Anti-Trust Act
– This was a regulation attempt by the government, passed by Congress in 1890, with a broad purpose to oppose monopolies by the big businesses. The Act prohibited certain business activities deemed to be anti competitive by the federal government regulators and required investigations and the pursue of trusts.
– These laws was a minor form of regulation attempt by the Massachusetts state government, in which stated for no business on Sundays.
By the People textbook
John D. Rockefeller