HISET Social Studies Practice

What was the significance of the Gibbons v. Ogden case?

1. It abolished the state licensing system

2. It affirmed and expanded the power of the federal government to regulate interstate commerce

3. It established federal control over all local businesses

4. It denied federal jurisdiction over interstate matters

The correct answer is: It affirmed and expanded the power of the federal government to regulate interstate commerce

The significance of the Gibbons v. Ogden case lies in its affirmation and expansion of the federal government's power to regulate interstate commerce. This 1824 Supreme Court decision clarified the scope of Congress's authority under the Commerce Clause of the Constitution, which grants Congress the power to regulate trade among states. The case arose from a dispute between two steamboat operators, Thomas Gibbons and Aaron Ogden, over navigation rights in waters that were considered to be in interstate commerce. The Court's ruling, delivered by Chief Justice John Marshall, emphasized that the federal government has the exclusive right to regulate interstate commerce, thereby invalidating state laws that interfere with that authority. This ruling set a precedent for an expansive interpretation of federal power, enabling Congress to regulate various economic activities that crossed state lines. It significantly influenced the balance of power between state and federal governments and laid the groundwork for future legislation and legal interpretations concerning commerce and economic activity in the United States. In essence, Gibbons v. Ogden reinforced the concept that federal regulations take precedence over state laws when it comes to interstate trade, shaping the landscape of American economic policy and governance for years to come.