85 this encouraged people to support new businesses

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Unformatted text preview: each seller determined 84 the price – so the market economy increased individual freedom. *The Government’s Role in the Market Economy* - Most believers in the market economy felt that limited government participation allowed for the most economic expansion. - Nevertheless, the government actually had an active role in economic growth through… United State Post Office – helped spread information and set up first telegraph lines Patent laws – protected inventors Protective tariffs – encouraged domestic manufacturing Surveying new land – allowed farmers to settle further West and use new lands Improving transportation – linked commerce, esp. linking Western farmers to the East - The judiciary encouraged gov’t involvement in the economy and business in general. See Gibbons v. Ogden (1824), which broadly defined Congress’ power over interstate commerce and Dartmouth College v. Woodward (1819), which protected contracts against state interference. - The concept of the corporation also emerged through federal and state court rulings: corporations, groups allowed to hold property and do business as if they were individuals, were allowed to sell shares where the shareholders were granted limited liability [no responsibility in company’s debt beyond original investment]. 85 - This encouraged people to support new businesses, and the number of corporations grew. Early on special legislative acts were needed for each corporation, but after the 1830s procedures were est. to make the process faster. - Court rulings extended the powers of corporations, as in the Charles River Bridge v. Warren Bridge (1837) case, in which it was decided that new enterprises couldn’t be held back by implied privileges under old charters – encouraging competition and new industries. - State gov’ts played a very large role in promoting the economy: they invested in railroads starting in the 1830s, provided banks and corporations w/capital, and regulated the activities of corporations and banks. - As a result of gov’t efforts the US economy grew [unevenly] from 1812 to around 1850. As the econom...
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This note was uploaded on 04/02/2014 for the course APUSH AP United taught by Professor Orban during the Fall '10 term at Harrison High School, Harrison.

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