The principle of laissez fairer Is that the an unobtrusive government Is the best government; that the government necessarily only ‘maintain domestic tranquility, defend the people from invasion, and protect them when traveling. ‘ To leave economic workings of the country to the people and let the ‘motives for production’ be that of the people not the government. Our government took such a stance in its early decades, but as national debt rose, interstate commerce became Indomitable, and the economy lost Its strength, the need to patch the economy became very Important.
The government found that the needed patch was much more Important than the laissez fairer freedom previously given to monopolistic trusts, who were loosing favor with the majority of the lower class, who shared on 50% of the nation’s wealth. As an attempt to end all that ailed the country the government began limiting land grants, instituting interstate commerce laws, and passing anti-trust bills, like The Sherman Ann-Trust Bill. As the railroads became larger and more powerful.
The need to give away land to million dollar companies became ludicrous to many citizens, especially in light of the declining economy.
These changing feelings among the people (voters) moved congress to decide that ‘no subsidy in money, bonds, public lands, endorsement, or by pledges of public credit’ should be given to the railroad or any other private company, when it could be spent on the common good of the public, or kept as capital In the Public Treasury. The Idea that no land need be given to the companies anymore was also supported by the growing feeling of being cheated by the railway through rebates, and other discriminations between large and small business.
The decision to regulate interstate commerce grew mostly out of the rebate, and Eng-haul, short-haul discriminations of the railroads. The growing feeling that the business were running their businesses only to end In a monopoly is led the Congress to determine that any ‘aggregations of capital, to foster a monopoly’ was illegal and wrong, and perpetrated for the express purpose of abusing capitalism and trying eliminate competition for the purpose of gaining more money.
Though many congressmen who devout Democrats tried to persuade the Congress into believing that the development of an ICC would lead to a controlling and ‘paternal overspent’, the Congress agreed that some sort of force must be put In place to regulate the Interstate commerce developing along our railroads, for the purpose of equality In the business world. The development of the Anti-Trust laws was for the express purpose of disassembling the business that had taken advantage of laissez fairer in such a way that they had gained a strangle hold not only on their market but on the country through the merging of different trusts.
This violation of laissez fairer was only force so large that it eliminated all competition. Sherman had no interest in ejaculating all business, Just those that had swallowed the competitions for the purpose of limiting production and fixing prices. ‘ He believed that all companies should continue as before along the lines of laissez fairer as long as they were in a market with fair and equal competition. Sherman ideas were backed up by Chief lustier M. W. Fuller in his decision in the case of the US v. E. C.
Knight Company, when he said that the purpose of the Sherman Bill was not to limit the commerce of America, but to limit ‘combinations, contracts and conspiracies to monopolize trade and commerce among several States or with foreign nations’ he violations of laissez fairer by the federal government were not supposed to be Intrusions into all commerce in America, but to protect the economy of America and the interests of the majority, which were not to have a few trusts running every aspect of their daily lives.
The violations of laissez fairer were permanent, but only sporadic for the purposes of eliminating or at least breaking down monopolies that should appear in the American economy. In history the use of such agencies as the ICC have prevented short term profits for companies, such as AT&T and Bell but in the long run helped the end user of such services.
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Violations of Laissez Faire by the U.S federal government. (2018, Feb 01). Retrieved from https://graduateway.com/violations-of-laissez-faire-by-the-u-s-federal-government/