Since 1934, the U.S. Supreme Court generally has interpreted the Contract Clause in a manner that allows government to enact legislation that benefits the general welfare even if it interferes with private contracts.

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Quizplus · Accepted Answer

The U.S. Supreme Court has indeed interpreted the Contract Clause in a way that permits the government to pass laws for the general welfare, even if these laws may interfere with existing private contracts, recognizing a balance between the protection of contracts and the necessity for government to act in the public interest. This approach has been evident in cases since the New Deal era, reflecting a more flexible interpretation of the Contract Clause.