USA HISTORY

Detailed explanation-1: -The government adhered to strict laissez-faire policies to encourage industrial growth. The government instituted laws and policies to promote a true capitalist economy. The government removed restrictions on foreign companies to promote international trade.

Detailed explanation-2: -Tariffs are a tax levied on imported goods and were the dominant source of the federal government’s revenue in the 19th century. Tariffs were also used for protectionist purposes, benefiting largely northern manufacturing businesses and effectively raising the costs to southern agricultural exporting industries.

Detailed explanation-3: -Tariffs Raise Prices and Reduce Economic Growth Historical evidence shows tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output.

Detailed explanation-4: -In 1922 Congress had enacted the Fordney-McCumber Act, which was among the most punitive protectionist tariffs passed in the country’s history, raising the average import tax to some 40 percent. The Fordney-McCumber tariff prompted retaliation from European governments but did little to dampen U.S. prosperity.

Detailed explanation-5: -Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise, supporting local industry.