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Unformatted text preview: each seller determined 84 the price – so the market economy increased individual
*The Government’s Role in the Market Economy*
- Most believers in the market economy felt that limited
government participation allowed for the most economic
- 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
- 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
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
- 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.
- Fall '10