Trust-Busting

Definition

Trust-busting refers to the efforts of the U.S. government to break up large corporate monopolies and trusts that were seen as stifling competition and harming consumers. It was a key component of the Progressive Era's push for economic and social reforms.

5 Must Know Facts For Your Next Test

1. President Theodore Roosevelt was a prominent trustbuster who used the Sherman Antitrust Act to break up monopolistic corporations like Standard Oil.
2. Muckraking journalists exposed the abuses of big business, fueling public support for trust-busting efforts during the Progressive Era.
3. The Hepburn Act of 1906 gave the Interstate Commerce Commission more power to regulate railroad rates and practices.
4. The Clayton Antitrust Act of 1914 expanded on the Sherman Act, prohibiting certain business practices that were seen as anti-competitive.
5. Trust-busting was a key part of the New Nationalism platform advocated by Theodore Roosevelt, which called for a stronger federal role in regulating the economy.

Review Questions

• Explain how trust-busting efforts emerged as a key component of the Progressive Era's reform agenda.
  • During the Progressive Era, public outrage grew over the monopolistic practices and abuses of large corporations, known as 'trusts.' Muckraking journalists exposed these issues, sparking a reform movement to curb the power of big business. Trust-busting, or the government's efforts to break up monopolies and promote competition, became a central part of the Progressive agenda. Presidents like Theodore Roosevelt used antitrust legislation like the Sherman Act to target and dismantle major corporate monopolies, reflecting the Progressive desire for a more active federal role in regulating the economy.
• Describe the key pieces of antitrust legislation that empowered the government's trust-busting efforts.
  • The Sherman Antitrust Act of 1890 was the first major federal law aimed at regulating monopolistic business practices. It prohibited the formation of monopolies and trusts that restrained trade. The Hepburn Act of 1906 expanded the powers of the Interstate Commerce Commission to regulate railroad rates and practices, while the Clayton Antitrust Act of 1914 further strengthened antitrust laws by prohibiting certain anti-competitive behaviors. These pieces of legislation gave the federal government more tools to challenge the power of large corporations and promote a more competitive economic environment, which was a central goal of the trust-busting movement.
• Analyze how trust-busting efforts under the Theodore Roosevelt administration reflected the broader Progressive vision for reform.
  • Theodore Roosevelt's aggressive trust-busting campaigns, including the breakup of the Standard Oil monopoly, exemplified the Progressive Era's desire to rein in the power of big business and promote a more equitable economic system. Roosevelt's 'New Nationalism' platform called for an active federal role in regulating the economy and protecting consumer interests. By using antitrust laws to dismantle monopolies, the Roosevelt administration sought to restore competition, limit corporate abuses, and empower the government to serve as a counterweight to the concentrated economic power of trusts. This trust-busting agenda was part of the Progressives' broader reform vision, which aimed to address the social and economic inequities of the Gilded Age through increased government intervention and a more balanced distribution of power between big business, workers, and consumers.

Related terms

Antitrust Legislation: Laws passed to regulate business practices and prevent monopolies, such as the Sherman Antitrust Act of 1890.

Monopoly: A situation in which a single company or group controls the entire market for a given type of product or service.

Trustbusters: Government officials and reformers who led the campaign to dismantle large corporate monopolies and trusts.