Ch.9 - How do National Efforts Regulate the Economy? The...

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How do National Efforts Regulate the Economy? The country continued to expand. New territories became new states and the federal government continued to get bigger in response. The industrial revolution of the late 1800s brought big business into the picture—particularly big railroads—and price fixing, monopolies, and unfair business practices became a growing problem. In response, Congress created the first independent regulatory commission called the Interstate Commerce Commission (ICC). This signified a shift in the powers of government from service to regulation. In 1900, Teddy Roosevelt asked Congress to create a Department of Commerce and Labor to oversee employer-employee relations due to intolerable labor practices like child labor, low wages, long hours, unsafe working conditions, and the refusal of employers to allow unions to protect employees. Woodrow Wilson later separated this department into two since it was difficult for one organization to represent both sets of interests. The ratification of the 16th amendment in 1913 also caused the government to get larger (and in other ways allowed and encouraged the growth of government). The 16th amendment allowed the government to tax personal income. This infusion of funds made it easier to support new services, agencies, and programs. What Should Government Do? Government was regulating business, but there were people who did not think that was the proper role of government even back in the 1800s. Some people followed a laissez-faire attitude toward business (remember this discussion back in chapter 1?) How did the New Deal make Government Bigger? FDR faced high unemployment and weak financial markets during the Great Depression. In order to face that crisis, he created large numbers of federal agencies and many federal programs. The alphabet soup he created (AAA, NIRA, CCC, and so on) was quickly passed by Congress, but stalled by the Supreme Court. In 1937, the Court argued that far ranging authority to regulate the economy was beyond the purview of the president and Congress. The laissez-faire Supreme Court invalidated much of the New Deal (this was also covered in chapters 3, 8, and 10.) FDR was frustrated and proposed adding appointees to the Court to change the majority vote. This is often referred to as FDR's plan to pack the Court. The Court quickly changed its mind and began voting in favor of the New Deal programs. What were the effects of World War II and its Aftermath? WWII (like the Civil War and WWI) also caused the government to grow. Returning veterans demanded new services resulting in the GI Bill for education and the Veteran's Administration housing programs. The Civil Rights Movement and their demands also caused government to grow through agencies like the Equal Opportunity Employment Commission (EEOC) and the Department of Housing and Urban Development. These changes and more lead us to a discussion of the nature of the modern bureaucracy or what today's
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This note was uploaded on 04/17/2008 for the course ? ? taught by Professor ? during the Spring '07 term at Gustavus.

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Ch.9 - How do National Efforts Regulate the Economy? The...

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