Final answer:
The laissez-faire economic policy allowed American businesses to initially grow unencumbered, which resulted in negative consequences like monopolies and poor working conditions. This led to a shift in government policy from non-intervention to increased regulation in the early 20th century to address these issues and protect public interests.
Step-by-step explanation:
The laissez-faire economic policy led to considerable changes in the structure of American business. Initially, businesses operated without much government intervention, with the belief that private investors were better at determining economic winners and losers, thus creating a naturally balanced market. However, the absence of regulation saw the rise of monopolies, leading to reduced competition. This, in turn, prompted government intervention in the early 20th century. Figures like President Theodore Roosevelt initiated the breaking up of these monopolies, and the government introduced regulation to protect workers, consumers, and ensure fair competition.
As laissez-faire economics reached its apex during the period of rapid industrialization in the late 19th century, businesses enjoyed minimal government oversight which allowed for significant growth and consolidation. However, such a hands-off approach led to issues such as unethical business practices and the suppression of competition. The government responded with an increasing number of regulations to address these downsides and to modify the market economy for public welfare, marking a shift in the government's relationship with business from non-intervention to a regulatory role to safeguard broader economic and societal interests.