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Zorluk: ZorRise of Industrial Capitalism and Business Consolidation

Source: President Grover Cleveland, Annual Message to Congress, December 6, 1887

"But our present tariff laws, the vicious, inequitable, and illogical source of unnecessary taxation, ought to be at once revised and amended. These laws raise the price to consumers of all articles imported and subject to duty... [Furthermore], the competition of domestic manufacture is prevented, and the trust and combination are encouraged to limit production and inflate prices... Under these laws, the corporations and combinations which should be the servants of the people are fast becoming their masters."

Which of the following statements best describes the role of the federal government in the economy during the late nineteenth century, as illustrated by the tariff policies criticized in the excerpt?

  1. A
    The federal government strictly adhered to laissez-faire economic principles by refusing to influence trade relations or market competition.
  2. B
    The federal government prioritized the regulation of corporate monopolies to protect consumers from artificial price inflation.
  3. The federal government actively intervened in the market to protect and promote domestic industrial interests, rather than maintaining a strict laissez-faire policy.Cevap
  4. D
    The federal government nationalized major manufacturing and transportation industries to curb the power of trusts.

Cevap

The federal government actively intervened in the market to protect and promote domestic industrial interests, rather than maintaining a strict laissez-faire policy.
The correct answer is correct because protective tariffs were a key tool used by the federal government during the Gilded Age to insulate American businesses from international competition. This direct intervention demonstrates that the late nineteenth-century economy was not characterized by a strict policy of laissez-faire non-intervention.

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1
Analyze the historical source context and the author's primary focus.
President Cleveland is criticizing high protective tariff laws for artificially raising consumer prices and facilitating the rise of industrial trusts and monopolies.
This establishes that the tariff system was a government-enforced policy that shaped Gilded Age corporate consolidation.
2
Relate the protective tariff policy to Gilded Age economic theories.
A protective tariff is an active intervention in the free market to benefit domestic business, which directly runs counter to the concept of pure laissez-faire capitalism.
This helps identify the gap between the popular myth of laissez-faire and the actual practice of federal support for industry.
3
Evaluate the choices to find which option accurately captures this government-business relationship.
The statement that the government intervened to protect domestic industries rather than practicing strict laissez-faire is correct, while other options either misstate regulatory priorities or incorrectly claim that industries were nationalized.
This confirms the correct option based on historical reality and the text's evidence.

Anahtar Kavram

The Gilded Age economy was characterized by significant federal intervention, such as protective tariffs and subsidies, rather than pure laissez-faire capitalism.
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Rise of Industrial Capitalism and Business Consolidation

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