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🦢constitutional law i review

Economic Substantive Due Process

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

Economic substantive due process is a constitutional doctrine that protects certain economic rights from government interference, arguing that individuals have a fundamental right to engage in business and contract freely. This concept suggests that laws affecting economic rights must meet a higher standard of scrutiny, preventing arbitrary or unreasonable government actions that infringe on personal and property rights.

5 Must Know Facts For Your Next Test

  1. Economic substantive due process gained prominence in the late 19th and early 20th centuries as courts began to protect individual economic rights from regulatory interference.
  2. The doctrine has its roots in cases like Lochner v. New York, where the Supreme Court invalidated laws restricting workers' hours, emphasizing the right to contract.
  3. Over time, the application of economic substantive due process has diminished, especially following decisions like West Coast Hotel Co. v. Parrish, which upheld minimum wage laws.
  4. Economic substantive due process is often criticized for prioritizing property rights over social welfare, leading to tensions between individual liberties and collective regulations.
  5. Currently, the Supreme Court rarely invokes economic substantive due process, primarily focusing on other forms of constitutional protections for economic rights.

Review Questions

  • How did historical cases like Lochner v. New York shape the understanding and application of economic substantive due process?
    • Lochner v. New York played a crucial role in defining economic substantive due process by establishing a precedent that emphasized the right to freely contract as a fundamental liberty. The Supreme Court ruled against state laws limiting work hours for bakers, arguing such regulations interfered with individual freedom and economic rights. This case set the stage for further interpretations of economic rights as being protected under the Fourteenth Amendment, though its application has evolved over time.
  • Discuss the relationship between economic substantive due process and the Contract Clause within the context of modern legal interpretations.
    • The Contract Clause and economic substantive due process both aim to protect individual economic interests from governmental interference but do so through different frameworks. The Contract Clause specifically prohibits states from passing laws that impair contractual obligations, while economic substantive due process provides broader protections for personal and property rights against arbitrary government actions. In modern legal interpretations, courts tend to emphasize the Contract Clause more than economic substantive due process, reflecting a shift towards allowing greater regulatory power over economic matters.
  • Evaluate the current relevance of economic substantive due process in light of recent Supreme Court decisions and broader societal impacts on individual rights.
    • The relevance of economic substantive due process has significantly waned in recent years, especially as the Supreme Court has prioritized other constitutional protections over economic rights. With landmark cases favoring governmental regulations on business practices and labor relations, like West Coast Hotel Co. v. Parrish, there has been a clear trend away from strict protections for economic liberties. This shift has sparked debates about balancing individual rights with social responsibility and public welfare, reflecting ongoing tensions in American law regarding personal freedoms versus collective needs.