Final answer:
The federal government has the power to regulate interstate commerce and trade with foreign nations under the interstate commerce clause of the U.S. Constitution. This authority has been upheld and expanded in scope through Supreme Court decisions and federal legislation over time, addressing various economic and social issues.
Step-by-step explanation:
Yes, the government had the power to regulate commerce or business between states and with foreign countries. This power is derived from what is known as the interstate commerce clause, found in Article I, Section 8 of the United States Constitution, which allows Congress to regulate commerce 'with foreign Nations, and among the several States, and with Indian Tribes.' Ever since the landmark Supreme Court decision in 1824's Gibbons v. Ogden, the authority to manage commerce across state lines has been recognized as a federal responsibility. Over time, the Supreme Court's interpretation of this clause has varied, but generally, it has trended towards a broader application, especially during the 1930s to address the Great Depression and in subsequent decades to tackle issues such as racial segregation and environmental protection. Federal legislation has often drawn upon this commerce power to enact laws concerning economic activity that was previously under state control.