Final answer:
Roosevelt believed the government should act as an impartial arbiter in labor disputes, maintaining neutrality and ensuring justice, as demonstrated by his intervention in the 1902 coal miners' strike. His approach marked a shift towards federal activism in labor conflicts, highlighting the government's role in preventing disputes from harming public welfare.
Step-by-step explanation:
According to Roosevelt, the government’s role in disputes involving labor was that of an arbitrator, ensuring justice and maintaining neutrality without favoring either business owners or labor unions. During the 1902 coal miners' strike, Roosevelt threatened to use federal power to take over the mines, prompting both sides to agree to arbitration, which led to a settlement.
This action set a precedent that when a strike threatened public welfare, the government would intervene. Roosevelt's philosophy of federal activism highlighted his belief in a proactive governmental role to guarantee fair treatment for all parties in a labor dispute, while also serving as a mediator to prevent conflicts from escalating. This contrasted with past government approaches that often supported businesses over workers’ rights.
Policies affecting labor markets require careful consideration of the effects on the information and incentives for employers and employees. In some cases, the government played a role in aiding unemployed individuals with job searches, reflecting the need for balance in labor market regulations. This approach aimed to neither discourage the supply of labor nor the demand, indicating a nuanced view of the government's role in labor dynamics.