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Because of American government's laissez-faire policies, there was hardly any government interference in businesses - meaning business leaders could pretty much do what they wanted and go unchecked. The spoils system, in business and politics, involved leaders and people high up in the hierarchy to give positions to friends, relatives, and others they chose personally. As a result, high-ranking positions in large businesses were held by people who were often incompetent and were there merely due to social connecitons. With widespread use of the spoils system, big businesses were weakened to an extent. (Further, people who felt they were entitled to "earning" such a position, because of their relationship with or actions for the person giving out the job, who didn't receive it could get angry and take drastic actions against the person/company. Politically, Charles Guiteau and President Garfield, for example?) Other habits of industrialists of the time also had negative overall effects on business and especially on the working class. However, due to America's laissez-faire policy, there was no way for these actions, including the spoils system, to be regulated by an external authority, and so they continued.

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