Government Aids Business And A Market Economy Essay

3. According to Jefferson, who has the right to create a government? According to Jefferson, what is the purpose of a government? According to Jefferson, what should be done if a government fails to fulfill its purpose?

The United States is known for having a free-enterprise economy where a business can be conducted freely without government involved. In free-enterprise economies, goods and services are traded openly and are produced depending on the demand. People who support this type of economy believe it motivates businesses to make money and welcome new ideas. An important part of the economy is to have full employment and low inflation.

In general, the government helped promote and support businesses in order to advance the U.S.’s economy. Some examples would be the fact that they limited liability and incorporation laws using charters to protect businesses, provided easy credit for loans, and supported entrepreneurs. This type of involvement is what closely relates the changes in politics to the changes in economy. Most of the government’s involvement came through the American System. Developed by Congressman Henry Clay, this system was meant to protect the U.S. industry with tariffs, initiate internal improvements, and stabilize the economy. Clay’s first part of the plan was to put protective tariffs primarily on European goods. The total value of foreign exports to the U.S. escalated dramatically in only two years, going from about $13 million (1814) to $151 million (1816). British goods had unbeatable prices and the competition threatened to eliminate American businesses. In order to prevent this from happening Clay decided to place taxes on imports which would ultimately raise European costs to American consumers, shielding the U.S. so they could survive the competition. Now that Clay had established a safer way to have the government support the U.S.’s foreign affairs, his second part of the system involved domestic improvement. By the 1820’s, the controversial issue on whether Congress had the power to nationally finance roads, bridges, harbors, canals, and railroads had finally eased up. Skeptics like Presidents James Madison and Monroe had finally softened up and agreed that the government “should play a larger role in building the nation's infrastructure” (Politics in the Market Revolution). They did this by making funds accessible to the states as well as coordinating the projects, a good example

From 1865 to 1900 the federal government ignored a lot of economic affairs (also known as Laissez-faire) simply because they could and it made running the government much easier. This became a big issue when: railroad land grants, control of interstate commerce, and antitrust activities began to become very competitive in the market place. You may wonder what laissez-faire is; the dictionary definition is the theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs. This is the reason why larger companies could buy out smaller companies and raise the price of the product because they owned everything so to a large extent the government play a large part in the violation of laissez-faire.

Article I Section Eight of the U.S. Constitution provides that the Congress shall have the power to lay and collect taxes, duties, imposts and excises, to pay the Debts and provide

Enhancing the government was something that the New Deal was able to accomplish, however not without criticism. Through New Deal policies, the government became more powerful than it had previously been, and was now given more of a parental role over certain aspects of the economy. It had been given a much larger role in the stock market, which is still in place today, though it had previously been removed. This role was considered largely controversial by many people, and it continues to be to this day. Without the government’s help in these matters, which was proven in the 2008 recession, the stock market would crash again,

This act excludes the whole American people from competition in the purchase of this monopoly and dispose of it for many millions less than it is worth. The fourth section provision secures to the State banks a legal privilege in the Bank of the United States which is withheld from all private citizens. There was a lack of equality when paying with notes. A State bank that had notes by a particular branch could pay the dept to the Bank of the United States with those notes, but a citizen couldn’t pay with those notes but must have sold them at a discount or sent them to the branch to be cashed. This does not measure out equal justice to the high and the low, the rich and the poor. The president of the bank said that most of the State banks existed by its forbearance, the abstention of enforcing the payment of the debt. The influence of the self elected directory which is identified with those of the foreign stockholders may become concentered in a particular interest that could affect the purity of elections and the independence of the country when it goes to war. Their influence could have been so great as to influence elections and control the affairs of the nation.

11. Which clause states that the Constitution, and federal statutes and treaties, shall be the supreme law of the land.

This article, "The Necessary and Proper Clause" also known as "The Elastic Clause," gives Congress the power to broaden its powers and keep Federal balance. Supreme Court Justice Marshall presents an argument that supports Congress' regulation over all commerce. He clearly says, "It is the power to regulate; that is, to prescribe the rule by which commerce is to be governed. This power, like all others vested in Congress, is complete in itself, may be exercised to its utmost extent, and acknowledges no limitations other than are prescribed in the Constitution." Where the Constitution states, "Congress shall have power to regulate commerce with foreign nations, among the several States, and with the Indian tribes," the word "among" means intermixed with. Commerce may concern more than one state, therefore Congress needs to act "within the territorial jurisdiction of the several states" The Supreme Court held that the power of Congress includes navigation within its limits in every State. Any state activity that attempts to regulate interstate commerce is completely unconstitutional because in dealing with interstate commerce, it can be inferred from the Constitution that the Federal government must regulate interstate commerce. The Constitution did not provide states with the power to regulate commerce between states so it is imperative that the federal government intercedes. Although the only

The market revolution in the United States brought a sudden change in the manual labor system originating in south and digressed to the north and later spread to the entire world. The integral part of the economic growth in the United States in the nineteenth century was a good thing that brought change in the market. In respect to the change, America took its first major step in creating the world’s most stable and strongest economy, which gave room for growth among the citizens.

During the late 1700’s, the United States was no longer a possession of Britain, instead it was a market for industrial goods and the world’s major source for tobacco, cotton, and other agricultural products. A labor revolution started to occur in the United States throughout the early 1800’s. There was a shift from an agricultural economy to an industrial market system. After the War of 1812, the domestic marketplace changed due to the strong pressure of social and economic forces. Major innovations in transportation allowed the movement of information, people, and merchandise. Textile mills and factories became an important base for jobs, especially for women. There was also widespread economic growth during this time period

In addition, the federal government should fulfill its obligation in return of citizen’s taxation. Article. I. Section. 8 specifically enumerates the power belonged to the congress, which refers to the federal

The enumerated powers given to Congress in Article I of the Constitution include the power to collect taxes, regulate commerce, establish post offices, and many more. The first two clauses of Article 1, Section 8, state that Congress can tax and lay tariffs as well as go into debt to other countries. Additionally, Congress can regulate interstate and international commerce, regulate the process for immigrants to become citizens, and print money. Congress also has the power to set up copyrights, create lower-level federal courts that are under the Superior Court, declare war, and raise the armed forces. The “Elastic Clause” grants Congress implied powers to have additional powers that are “necessary and proper”.

A weak fiscal position can cause weak government ability to provide security for property rights, and makes it harder to borrow in the face of security crisis’s. Citizens receive value from government’s role in making and enforcing laws that give citizens the opportunity to freely pursue opportunities. The US is a developed economy but don’t mean its government doesn’t need to retake reform measures. Having an orderly governing body allows private citizens to make long term investment decisions about their personal resources. The government involvement is vital because it provides the best opportunity to accomplish its national investment and growth goals through entrepreneurial spirits of all citizens.

Five major functions play a role of government in the market economy. The five functions consist that governments provide framework for legal or social, sustain the competition, support public services, national protection, income and social welfare, and stabilize the economy. When markets and policies are functioning incorrectly the government provides support to help correct situations when the market fails. As well as, managing the overall pace of economic activity, striving to maintain a consistent growth, increase employment, and price stability. By applying and utilizing the fiscal policy which monitors spending and tax rates, or also the monetary policy which manages the supply of money and how to manage the use of credit. This can either speed up the growth of the economy's rate or slow it down. Which affects price levels and can increase or decrease employment as well. Therfore, the government is needed to keep the economy afloat.