How has the Supreme Court interpreted the interstate commerce clause?

The Supreme Court has interpreted the interstate commerce clause in the United States Constitution as granting Congress the power to regulate commercial activity that has a substantial effect on interstate commerce. This power is known as the “dormant commerce clause” and holds that Congress possesses the power to regulate economic activity that crosses state lines. The Supreme Court has long held that the interstate commerce clause grants Congress an expansive power to regulate commercial activity, even if the effect on interstate commerce is not readily apparent. This is known as the “rational basis” test, which states that Congress need not show an explicit connection between the targeted action and interstate commerce so long as their regulation is based on a reasonable inference of such a connection. The Supreme Court also recognizes that certain government actions can be preempted by the federal government. This means that the federal government can take action to ensure that the US will remain a unified market and prevent states from enacting laws that are in direct conflict with existing federal laws or regulations. This preemption is known as the McCarran-Ferguson Act, which was first established in 1945. Finally, the Supreme Court has also established that Congress can regulate activity that occurs entirely within a single state, so long as the activity has a substantial effect on interstate commerce. This is known as the “substantial effects” test, which holds that Congress may regulate economic activity within a single state if it is determined that such activity is part of an overall interstate economic market.

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