What can Congress regulate to prevent negative externalities that impact the national market?

Congress has the authority to regulate all businesses under the Commerce Clause primarily to address and prevent negative externalities that can affect the national market. The Commerce Clause grants Congress the power to regulate commerce among the states, which encompasses a broad range of activities affecting interstate trade and economic relationships.

When negative externalities, such as pollution or other harmful effects of business operations, impact the economy at a national level, Congress can step in to enact regulations. This is because these externalities do not respect state lines and can have wider implications that affect interstate commerce as a whole.

While local businesses and large corporations can certainly have externalities, the scope of Congress’s regulatory power is more extensive than just those entities. It applies universally to all businesses if their activities have a substantial effect on interstate commerce. This understanding of the Commerce Clause reflects the need to ensure a balanced economic landscape where national interests are protected from localized practices that could harm the broader marketplace.

By regulating all businesses, Congress can address a wide range of issues, ensuring that negative externalities do not undermine national economic stability and competitiveness.