key term - Antitrust Movement

Definition

The Antitrust Movement was a campaign in the late 19th and early 20th centuries aimed at breaking up monopolies and promoting competition in the American economy. It sought to address the growing power of large corporations, known as trusts, which were seen as harmful to consumers and small businesses. This movement was a significant part of broader debates over the role of government in regulating the economy and protecting public interests.

5 Must Know Facts For Your Next Test

1. The Antitrust Movement gained momentum with the passage of the Sherman Antitrust Act in 1890, which was the first federal legislation aimed specifically at curbing monopolies.
2. Prominent figures such as President Theodore Roosevelt championed antitrust laws, leading to significant legal actions against major corporations like Standard Oil and U.S. Steel.
3. The Federal Trade Commission (FTC) was established in 1914 as part of ongoing efforts to enforce antitrust laws and prevent unfair business practices.
4. The Clayton Antitrust Act of 1914 expanded on the Sherman Act by prohibiting specific anti-competitive practices and providing clearer definitions of unfair competition.
5. The Antitrust Movement not only addressed economic concerns but also reflected broader social values, as it aimed to protect consumers and promote fair business practices in an increasingly industrialized society.

Review Questions

• How did the Antitrust Movement reflect changing attitudes towards big business and government intervention in the economy?
  • The Antitrust Movement emerged during a time when many Americans were increasingly wary of the power held by large corporations, or trusts. As these entities grew, they began to dominate entire industries, leading to concerns about consumer rights, fair competition, and economic equity. The movement signified a shift towards greater acceptance of government intervention as necessary to regulate these powerful businesses and protect the interests of the public, showcasing a belief that unregulated capitalism could lead to abuse of power.
• Evaluate the impact of key legislation like the Sherman Antitrust Act on American businesses during the early 20th century.
  • The Sherman Antitrust Act significantly impacted American businesses by establishing legal grounds for challenging monopolistic practices. It allowed for the federal government to take action against companies that engaged in anti-competitive behavior, leading to high-profile cases against major corporations. This legislation not only curtailed some monopolies but also set a precedent for future regulatory measures, ultimately shaping the landscape of American capitalism by fostering a more competitive environment.
• Analyze how the goals of the Antitrust Movement were connected to broader social reforms during the Progressive Era.
  • The goals of the Antitrust Movement were deeply intertwined with broader social reforms of the Progressive Era, which sought to address various societal issues caused by industrialization. Both movements aimed at promoting fairness, equality, and consumer protection while challenging corrupt practices that disadvantaged ordinary citizens. By breaking up monopolies and enforcing fair trade, proponents of antitrust laws were advocating for an economic system that aligned with progressive ideals of democracy, social justice, and empowerment for all individuals in society.

Related terms

Sherman Antitrust Act:

A landmark federal statute passed in 1890 that aimed to outlaw monopolistic business practices and promote competition.

Trusts:

Large business entities that sought to control entire industries through monopolistic practices, often leading to reduced competition and higher prices for consumers.

Progressive Era:

A period from the 1890s to the 1920s characterized by social activism and political reform, including efforts to regulate big business and promote social justice.