Because of American government's laissez-faire policies, there was hardly any government interference in businesses - meaning business leaders could pretty much do what they wanted and go unchecked. The spoils system, in business and politics, involved leaders and people high up in the hierarchy to give positions to friends, relatives, and others they chose personally. As a result, high-ranking positions in large businesses were held by people who were often incompetent and were there merely due to social connecitons. With widespread use of the spoils system, big businesses were weakened to an extent. (Further, people who felt they were entitled to "earning" such a position, because of their relationship with or actions for the person giving out the job, who didn't receive it could get angry and take drastic actions against the person/company. Politically, Charles Guiteau and President Garfield, for example?) Other habits of industrialists of the time also had negative overall effects on business and especially on the working class. However, due to America's laissez-faire policy, there was no way for these actions, including the spoils system, to be regulated by an external authority, and so they continued.
Leaving it alone.
laissez faire capitalism
Laissez -faire is a French term that means the avoidance of government control of the business and of the economy. This idea has been replaced with the term "free markets" which understands that government regulations on business to a certain extent are necessary for a wealthy and fair economy. The US economy can be described as a free market economy.
laissez-faire
Until 1890, the U.S. government's policy toward business was Laissez-faire, or "hands off." The Sherman Anti-trust Act was enacted in 1890 to break up monopolies. Since then, the government has taken more and more of an interventionist/regulated approach to business.
by following a laissez-faire policy of minimal regulation
by following a laissez-faire policy of minimal regulation
Law makers fail to regulate business-----companies form monopolies
laissez-faire
Generally, business owners were in favor of laissez-faire systems because the business owners would be free of any and all regulations.
There is little government regulation of business.
the business owners
by following a laissez-faire policy of minimal regulation
A laissez-faire economic policy involves a minimum of government interference in business.
A laissez-faire economic policy involves a minimum of government interference in business.
Laissez-faire
Herbert Hoover