6.12 Controversies over the Role of Government

Laissez-faire vs. reform

Many Gilded Age business leaders and thinkers embraced laissez-faire capitalism, arguing government should not interfere with the economy. Social Darwinism, popularized by William Graham Sumner, claimed wealth reflected natural superiority and that helping the poor interfered with natural selection. Critics like Lester Frank Ward countered that government could and should actively improve society through reform.

Calls for government action

Farmers, laborers, and reformers pushed back against unregulated capitalism. The Grange and Populist Party demanded government regulation of railroads, a graduated income tax, and free silver. The Social Gospel movement, led by figures like Walter Rauschenbusch, urged churches and government to address poverty and urban problems, linking Christian ethics to social reform.

Courts and legislation clash

Congress passed the Interstate Commerce Act (1887) and Sherman Antitrust Act (1890) to curb monopolies and railroad abuses, but courts often sided with business. In *Plessy v. Ferguson* (1896), the Supreme Court upheld segregation, showing limited federal willingness to protect civil rights, reflecting ongoing tension between government power and individual/business freedoms.

Key terms

Social Darwinism

Belief that wealth and success reflect natural superiority; government aid interferes with natural selection (William Graham Sumner).

Lester Frank Ward

Sociologist who argued government should actively intervene to improve society, countering Social Darwinism.

Social Gospel

Movement applying Christian ethics to social problems, urging churches and government to fight poverty and urban ills.

Interstate Commerce Act (1887)

Law creating the ICC to regulate railroad rates and practices; first major federal regulation of business.

Sherman Antitrust Act (1890)

Law banning monopolies and trusts that restrained trade; weakly enforced in the 1890s.

Try an AP-style question

The Populist Party's Omaha Platform called for…

1. the gold standard and high tariffs
2. abolishing the income tax
3. ending all immigration
4. free silver and government railroad ownership