Interstate Commerce

Definition

Interstate commerce refers to the trade, movement, and transactions of goods, services, and people across state boundaries within the United States. It is a fundamental economic activity that has been a central focus of the federal government's regulatory power since the ratification of the Constitution.

5 Must Know Facts For Your Next Test

1. The Articles of Confederation did not grant the federal government the power to regulate interstate commerce, leading to economic challenges and conflicts between the states.
2. The lack of federal power over interstate commerce was a key weakness of the Articles of Confederation, which helped drive the push for a new constitution.
3. The Commerce Clause was included in the U.S. Constitution to give Congress the authority to regulate commerce between the states, preventing economic balkanization.
4. The Supreme Court's interpretation of the Commerce Clause has evolved over time, expanding the federal government's power to regulate a wide range of economic activities.
5. The dormant Commerce Clause doctrine has been used by the courts to strike down state laws that discriminate against or unduly burden interstate commerce.

Review Questions

• Explain how the lack of federal power over interstate commerce under the Articles of Confederation contributed to the push for a new constitution.
  • Under the Articles of Confederation, the federal government lacked the authority to regulate interstate commerce, leading to economic challenges and conflicts between the states. This weakness of the Articles was a key factor that drove the push for a new constitution that would grant the federal government the power to oversee and coordinate economic activity across state lines. The inability to address issues like tariffs, trade barriers, and the free movement of goods and people between states highlighted the need for a stronger central government with the power to regulate interstate commerce.
• Describe how the Commerce Clause has been interpreted by the Supreme Court to expand the federal government's regulatory power over economic activities.
  • The Supreme Court's interpretation of the Commerce Clause has evolved over time, gradually expanding the federal government's power to regulate a wide range of economic activities. In the landmark case of Gibbons v. Ogden (1824), the Court established the federal government's broad authority to regulate interstate commerce, setting the precedent for a more expansive reading of the Commerce Clause. Subsequent rulings have further strengthened the federal government's ability to regulate activities that have a substantial effect on interstate commerce, even if they occur entirely within a single state. This has allowed Congress to exercise its commerce power to address a variety of economic issues, from labor laws to environmental regulations.
• Analyze how the dormant Commerce Clause doctrine has been used to limit state power and promote the free flow of interstate commerce.
  • The dormant Commerce Clause doctrine, established through judicial interpretation, holds that the Commerce Clause not only grants Congress the power to regulate interstate commerce, but also restricts states from passing laws that discriminate against or unduly burden such commerce, even in the absence of federal regulation. This doctrine has been used by the courts to strike down state laws that impede the free movement of goods, services, and people across state lines. By limiting the ability of states to enact protectionist policies or create economic barriers, the dormant Commerce Clause doctrine has helped to maintain the national common market and promote the free flow of interstate commerce, which was a key objective of the framers in drafting the Constitution.

Related terms

Commerce Clause: The constitutional provision that grants the U.S. Congress the power to regulate commerce among the states, with foreign nations, and with Native American tribes.

Dormant Commerce Clause: The judicial interpretation that the Commerce Clause not only grants Congress the power to regulate interstate commerce, but also restricts states from passing laws that discriminate against or unduly burden interstate commerce.

Gibbons v. Ogden: A landmark Supreme Court case in 1824 that established the federal government's broad power to regulate interstate commerce, setting the precedent for an expansive interpretation of the Commerce Clause.