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Serggg [28]
3 years ago
8

A cattle-producing state adopted a statute requiring any food service business operating in the state to serve beef raised in th

e United States. A licensed hot dog vendor who worked at a football field within the state and who had been buying hot dogs made with foreign beef for the past several years estimated that switching to an all-beef hot dog made from United States beef would reduce his profits by 10%. An attorney hired by the vendor to challenge the statute discovered during research into the case that most of the footballs used at the football field at which the vendor worked were made of foreign leather.What grounds could be the vendor's argument against the constitutionality of the state statute?
Social Studies
1 answer:
Alex17521 [72]3 years ago
3 0

Answer: A. The statute burdens foreign commerce

Explanation:

The options are:

A. The statute burdens foreign commerce.

B. The statute violates equal protection guarantees because it is not rational to prohibit the sale of foreign beef but not foreign leather.

C. The statute substantially interferes with the vendor's right to earn a living under the Privileges or Immunities Clause of the Fourteenth Amendment.

D. The statute constitutes a taking without due process of law.

From the question, we are informed that a cattle-producing state adopted a statute that requires any food service business operating in the state to serve beef raised in the United States and that a licensed hot dog vendor who worked at a football field within the state and who had been buying hot dogs made with foreign beef for the past several years calculated that switching to an all-beef hot dog made from United States beef would reduce his profits by 10%.

The vendor then hired an attorney to challenge the statute and the attorney discovered during research into the case that most of the footballs used at the football field at which the vendor worked were made of foreign leather.

Based on the above scenario, it should be noted that it is the Congress that has power to regulate foreign commerce. Hence, in this scenario, the state adopting a legislation that requires the private vendors to favor the breed served in the United States over the foreign products is outside its powers scope. Only the congress can make such decision.

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What made the Great Depression "Great" was the government response. Constant changes the regulatory environment, tax increases, massive deficits, and failure to let the market correct paralyzed the economy in its depressed state for 15 years.  

Both were caused primarily by an over expansion of credit rooted in loose money supply. The monetary response to the current recession has been different. Rather than tightening to force the market to bottom, the Fed has maintained low rates in an effort to re-inflate the bubble conditions. Hoover/Bush & FDR/Obama responses are similar as all tried to spend their way out of the problem.  

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After WWI, Britain reset the pound to the pre-WWI level even though their money supply had far exceeded pre-WWI levels. In an effort to slow the flight of gold from Britain, the US federal reserve (led by Benjamin Strong) lowered interest rates. As always, artificially low interest rates caused massive distortions in asset values. Money flowed into the stock market and people who would not normally have been stockholders bought stocks in place of other investments that would have yielded better interest rates absent fed policy. Margin was used excessively because the real cost of leveraging was distorted by fed interest rate policy.  

The fed continually lowered interest rates all the way into 1929. When the bubble popped, they tightened policy and raised rates. This contributed the deflationary spiral; however, the deflationary spiral could not have been as severe without the loose policy during the bubble.  

2008 crash:  

Beginning in the early 1990s, the federal reserve (led by Alan Greenspan) lowered rates while monitoring consumer prices as indicators of inflation. They ignored bubbles in the stock market directly caused by their inflationary monetary policy. When the stock bubble popped, they lowered rates further and pushed misdirected investment towards other assets - most commonly housing.  

After the attacks of 9/11/2001, the fed pushed rates to 0 (long term rates were effectively negative and continue to be).

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Answer:

                      IS FREE ENTERPRISE SYSTEM NECESSARY?

What is a free enterprise system?

This is a system that allows individuals to self-regulate their business and make business decisions with little or no government restriction or intervention. This system is pro-Capitalist.

This system helps promote and encourage healthy competition because one business owner is trying to outdo the other business owner by offering to sell at a cheaper rate or giving discounts for a limited time period to maximize profit.

However, while this sounds good, it has some disadvantages because, in the spirit of competition and pursuit of profit, business owners get tempted to cut corners and even do some unethical or even downright illegal things to make a profit since they are unregulated by the government. A business owner might decide to ignore safety checks for his workers in order to save that cost which could be catastrophic.

Another potential downside of a free enterprise system is the danger of business owners raising prices of goods or services when demand exceeds supply which in turn causes inflation.

In conclusion, while a free enterprise system gives room for competition, I feel it is not absolutely necessary for an individual to make an impact in the business world unless such a man is an honest person who would not change his principles to make a few extra money.

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