Page 1 of 2

Economic Growth in the Late 19th Century

Continues for 1 more pages »
Read full document

Economic Growth in the Late 19th Century

Page 1 of 2
From the year 1865 to 1900 the United States government was attributed to following the standards of laissez-faire, an economic axiom in opposition of governmental moderation of or meddling in commerce beyond the merest essential for a free-enterprise organization to function according to its own economic regulations. The United States government took this stance of noninterference, however, apparent within the guiding principles concerning railroad land grants, management of interstate commerce, as well as antitrust actions we see direct governmental intervention and clear infringement and disruption of laissez-faire ideology. During the late 19th century many Americans advocated the fosterage of a laissez faire administration to allow for the insurance of property rights as well as the upkeep of social order. However, many Americans believed that the government did not have the right to obstruct with expansion and commerce. Although the United States continued to be passive for the most part in regard to regulating commerce, the United States government did hold up commerce through the bulky number of land grants for railroads. The new railroads gained munificent land and money advancements from local, state, and federal governments. These land grants would afterward turn out to be the foundation for thousand of railways fusing the complete Union in addition to lengthening out to supplementary regions throughout the country. Altogether, the governmental proceedings may have proved anti-laissez faire, nevertheless they were still an indisputably encouraging influence on United States commerce. However, the United States government would soon encounter severe problems. With large amounts of land grants, ample amounts of monopolies were formed. It became obvious that the distinguishable laws of trade were able to function but were unsatisfactory at best. These economic difficulties craved governmental intervention, forcing the encroachment of the established...