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

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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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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