What were two ways the government aided the growth of industry?

• A. Laissez-faire capitalism and special considerations
• B. Tariffs and subsidies
• C. Regulation and nationalization
• D. Tax breaks and grants

Answer: (A)

Government support for industry came from shielding domestic producers and providing financial help. Tariffs protected U.S. factories by making imported goods more expensive, which encouraged people to buy American-made products and let industries expand. Subsidies—such as cash payments, tax incentives, land grants, or railroad subsidies—lowered costs and helped build the infrastructure and capital needed for growth. This combination of protection and financial assistance was a common way governments boosted industrial expansion in the late 19th and early 20th centuries. Laissez-faire describes little government action, which wouldn’t fit the idea of aiding growth, and while tax breaks and grants are forms of subsidies, the usual historical pattern highlights tariffs alongside subsidies as the two main methods.