From Laissez-faire To Regulated Economy

The United States was facing numerous problems and conflicts at the beginning of thetwentieth century. However, the U.S. economy did not crash but developed in its fullblossom. This thesis examines the transition of U.S. economy during TheodoreRoosevelt’s presidency and studies how Theodore Roosevelt responded to variouscrises.The Theodore Roosevelt administration greatly increased its scope to include a widerange of economic issues as well as social issues into its agenda. U.S. used to relyheavily on local courts and the states, but the Theodore Roosevelt administration sawa surge in federal legislation and enhanced administrative regulations. The presidencyof Theodore Roosevelt unveiled an era of government interventions: U.S. economytransformed from traditional laissez-faire to a regulated economy aiming at commonbenefits. Rather than simple reaction to certain issues, such transition of U.S.economy is a continuous and dynamic process, a kind of self-evolvement withoutdrastic changes or violent revolution.The presidency of Theodore Roosevelt manifested the American traditions while itinfused U.S. economy with new life. The essence of its regulations was to preservethe fundamental values and institutions. The push of Theodore Roosevelt’sadministration for a stronger, more regulative government, as well as its aim toprovide a square deal, can be traced back to the founding of the nation, echoing theinterplay between laissez-faire and governmental intervention. Viewed in this light,the Theodore Roosevelt administration was both progressive and conservative,resulting in a more powerful federal government and a more regulated economy. TheTheodore Roosevelt administration successfully led U.S. through the phase of crisisand accommodated it to modern economy of a new century.