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The relationship between the federal government and private business has been defined by a growing role of the government in regulating private business including the passage of antitrust acts, the Interstate Commerce Act, and various legislative acts, including the Pure Food and Drug Act. The effects of industrialization precipitated a need for regulation aimed at protecting consumers and workers, as well as promoting fair business practices.
The relationship between the federal government and private business has been defined by a growing role of the government in regulating private business including the passage of antitrust acts, the Interstate Commerce Act, and various legislative acts, including the Pure Food and Drug Act. The effects of industrialization precipitated a need for regulation aimed at protecting consumers and workers, as well as promoting fair business practices.
Cost and Benefits of Laissez-Faire Economy
Cost and Benefits of Laissez-Faire Economy
- Cost: a lack of government regulations lead some enterprises to resort to corrupt, unethical practices that harm the public good, workers, and consumers, such as monopolies, price collusion, and manufacturing of unsafe products; a lack of patent and other legal protections for intellectual property and innovations limits the ability of entrepreneurs to capitalize on new ideas
- Benefit: lower barriers for the creation of a business; less government bureaucracy reduces business costs
SHERMAN ANTI-TRUST (1890) was the first law to outlaw trusts. It set the foundation for later legislation regulating monopolies and price collusion.
SHERMAN ANTI-TRUST (1890) was the first law to outlaw trusts. It set the foundation for later legislation regulating monopolies and price collusion.
INTERSTATE COMMERCE ACT (1887) was the first federal law regulating business. It resulted in the creation of the Interstate Commerce Commission (ICC) as the first independent federal agency. The agency was initially charged with monitoring railroad pricing. Later, the ICC’s regulatory authority was expanded to include other businesses, such as oil companies, shipping on inland waterways, and trucking. The agency was abolished in 1995, yet served as a model for other federal level agencies
INTERSTATE COMMERCE ACT (1887) was the first federal law regulating business. It resulted in the creation of the Interstate Commerce Commission (ICC) as the first independent federal agency. The agency was initially charged with monitoring railroad pricing. Later, the ICC’s regulatory authority was expanded to include other businesses, such as oil companies, shipping on inland waterways, and trucking. The agency was abolished in 1995, yet served as a model for other federal level agencies
The PURE FOOD AND DRUG ACT (1906) was passed in response to Upton Sinclair’s work The Jungle. The law was intended to protect consumers from harmful, adulterated, misbranded, or poisonous foods, drugs, medicines and liquors; the manufacture, sale or transportation of such items was regulated
The PURE FOOD AND DRUG ACT (1906) was passed in response to Upton Sinclair’s work The Jungle. The law was intended to protect consumers from harmful, adulterated, misbranded, or poisonous foods, drugs, medicines and liquors; the manufacture, sale or transportation of such items was regulated
ESSENTIAL QUESTIONS!!
ESSENTIAL QUESTIONS!!
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