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Big Business Rough Draft
Big Business Rough Draft
advancements that led to many changes in government, business, and quality of life for the average
citizen. Although many ideas such as Social Darwinism and Laissez-faire were popular during this time, I
believe that the government did not keep their hands off the economy. There were implementations the
government applied that benefited businesses and did not fit the narrative of “hands off”.
Social Darwinism can be defined as the idea of “survival of the fittest”. The government should
not interfere in the economy or in people’s lives. Social Darwinists applied the concept of natural
selection to the affairs of men, which included: individuals, politics, businesses, and international
relations. Those who survived would go on and have children that were destined to succeed, as their
parents had. This was believed to benefit all of society, not just those at the top.
Laissez-faire is similar in the idea that the government should keep its hands off the economy, or
it might disrupt “natural forces”. Laissez-faire translates to “free market”, which sums up the structure
simply. It is a structure that encourages competition and hard work. The benefit of competition is it
keeps prices low and quality high, which is beneficial to the middle/lower classes of America. Businesses
supported this idea as it meant they weren’t going to be regulated, which brings another issue. Caveat
emptor, which is translated to “let the buyer beware”. No regulations meant the companies could sell
goods without being truthful as to how dangerous it is. This leads to many deaths as a result of
dangerous ingredients or just plain disregard for the safety of consumers. On the other hand, this
brought many money-making opportunities to businesses, as they could sell anything they wanted and
Even though these ideas supported less government intervention in the economy, they did just
the opposite. One of the beneficial things the government did was implement protective tariffs. These
were high taxes on imported goods, which would deter consumers from buying them and instead spend
money on American-manufactured goods. This in turn also raised the prices of American goods since
they could get away with barely raising the price and still undercutting imported goods. There were also
low interest loans that were taken out for businesses, which encouraged more competition and
Another big policy that was beneficial to a certain business was the land grants to railroads. This
policy gave railroad companies 20 square miles of free land (in a checkerboard pattern) for every mile of
railroad that was built. This was an incentive for railroad companies to build trans-continental lines
across America since it was too expensive for them to do it themselves. In this same policy, the
government also benefited. They were given the right to move troops and supplies westward for half the
normal cost of a fare. It also benefited the economy since people went where the railroads were built,
which means more cities and expansion. This policy was a success because the first transcontinental
railroad was completed in 1869, with four more following by 1900. These railroads were crucial in the
These policies implemented by the government do not follow the ideas of Social Darwinism or
Laissez-faire. They specifically benefit businesses, which is against both of these concepts, but businesses
in the 19th century could not care any less, if it made them the most money in the long run.