Question

Briefly describe laissez-faire economic policies in the Gilded Age.

Briefly explain ONE effect of laissez-faire economic policies in the Gilded Age.

Briefly describe ONE key historical similarity or difference between laissez-faire economic policies in the Gilded Age and economic policies in the Jacksonian Era.

Answer 1

SOLUTION

A) ECONOMIC POLICIES OF LAISSEZ-FAIRE

During the Gilded age, proponents of Laissez faire policies opposed government intervention in society or the market. Laissez faire ideology influenced government policies towards labour relations and reconstruction.Laiseez faire economics is a theory that restricts government intervention in the economy. It holds economy the strongest when all the government does is to protect individuals rights.Laissez-faire in french means let go. In other words, let the market do its own thing. If left alone, the law of supply and demand will effeciently direct the production of goods and services.The role of government in a laissez-faire economy is to prevent any coercion against individuals, theft, fraud and monopolies prevent rational market forces from operating. And the Laissez-faire policies need three components to work with: capitalism, the free market economy and the rational market economy. Capitalism is an economic system where private entities own the factors of production, whereas, the capitalism need a market economy to set prices and distribute goods and services and in market theory assumes that all the investors base their decision on logic rather than emotion.

B) ONE EFFECT OF LAISSEZ-FAIRE

Laissez-faire is a concept that advocates for limited government involvement in and regulation of our economy. One advantage to this philosophy is that businesses face fewer government rules and regulations. This allows the businesses the freedom to do many things, Providing autonomy by providing more space and would protect the business from the governments norms which would finally make the business activities harder and more difficult to proceed.

C) ONE DIFFERENCE OF LAISSEZ FAIRE IN THE GILDED AGE AND THE ECONOMIC POLICIES IN THE JACKSONIAN ERA.

Jackson's expansion of democracy was largely limited to European Americans and the voting rights was limited to the adults and white males only. There was little or no progress ( and in some cases a regression) for the rights of African Americans and the extensive period of Jacksonians democracy whereas in the Laissez-faire in the gilded age the business people have complete autonomy and free from government interventions.