Saturday, June 22, 2013

How was business in the 1920s helped by the Supreme Court?

In the 1920s, the United States Supreme Court generally
became much more pro-business.  It handed down a number of rulings in which it said that
various governmental regulations on business were unconstitutional.  By doing this, it
helped make it easier for businesses to make money.


A major
example of this came from the case of Adkins v. Children's Hospital
from 1923.  In that case, the Supreme Court struck down a law requiring companies to pay
a minimum wage to all their workers.  The Supreme Court reasoned that imposing minimum
wages took away workers' liberty to take work at whatever wage they
wanted.


In this and other cases, the Supreme Court ruled
that government should not make laws regulating business.  Businesses tend to dislike
regulations.  These decisions helped get rid of the regulations and, thereby, helped
businesses.

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