The substantial effect test was set up by congress to regulate any commercial activity within a state that might affect the commerce of the country/state in a substantial way.
if an intrastate commerce activity ( commerce activity within a state ) affects the other neighboring states, the congress has the power to regulate such commerce activity. like the importation of manufactured goods from another state within the jurisdiction of the federal powers, such commerce activity is regulated/restricted because it might violate federal standards. Substantial effect test was also used to setup minimum wage and working hours because these activities affects other states and its not peculiar to one state
<span>The test that was developed by the dissenters to determine whether the commerce clause applies to a particular activity is called "SUBSTANTIAL EFFECTS" test.
Substantial effects test is needed when an intrastate commerce activity affects an interstate commerce which may result to a growth or decay of its economy. If this happens, then Congress has the right to regulate the activity in pursuit of abiding by the Commerce Clause.</span>
