Laissez-faire

1. Laissez-faire 4th Period AP US History, Bonnecarre

2. Assess the validity of this statement. “Although the economic growth of the United States between 1860 and 1900 has been attributed to a governmental policy of laissez-faire, it was in fact encouraged and sustained by direct governmental intervention.”

3. A New Policy • In the United States during the 1860 to 1900 the government promoted and supported the idea of laissez-faire. This is the idea that the government would not interfere with the  economic affairs of the people. This statement is valid, in the sense that the government helped the people maintain the policy of laissez-faire. The United States government helped out in a few ways. They proved military to put down the many riots that broke out, they helped build the transcontinental railroad, they provided cheap land to buy, and lastly they came up with new policies.

4. Strikes • Between 1860 and 1900, several unions were formed. Many of these unions ended up starting strikes and riots during the late 1800s.These unions wanted better working conditions, and more money. Where the US government helped sustained the laissez-faire was first in 1877 in the first nation wide strike. 100,000 workers went on strike and refused to continue to build the railroad until they received more money. The government intervened and put the riot down. This allowed the railroad to be finished which connected the farthest points of the US.

5. Native American Land • The government also helped maintain laissez-fair by providing cheap land to buy. The government had moved most of the Native American out of the Great Plains by the mid to late 1800s. They then moved the Native Americans to reservations in Oklahoma. This left about 90 million acres for the government to sell for almost nothing, which provided the people of America with a way of starting over and making a living. People could now make their own money and work for themselves. This had a domino effect, because the people on the plains now produced food and live stock that could be transported to Chicago. This created many jobs in America, all because the government removed the Native Americans.

6. Railroad • Also in the later half of the 19th century the US government helped support laissez-faire by supporting the building of the railroad. Even during the civil war President Lincoln would not let the railroad companies stop building the railroads, mainly the transcontinental railroad. This connected the east and the west. The US government also gave railroad companies 170 million acres on which to build and expand their railroads. Overall this new technology created jobs, helped spread news, new ideas, and people.

7. Business • Lastly the government put in place new policies that allowed large businesses to grow. In the last half of the 1800s large businesses were the backbone of laissez-faire. First the government put a tariff on foreign goods to promote American made goods. Also the government allowed a large influx of immigrants to provide cheep labor for the large companies. This allowed large businesses to grow and prosper.

8. Conclusion • Overall the United States government help promote laissez-faire from 1860 to 1900, by providing military to put down the many riots that broke out, helping build the large railroad system, providing cheap land to buy, and lastly they put in place new governmental policies.  A combination of these allowed the United States government to support the policy of laissez-faire between 1860 to 1900.