Regulation of Business: Attacking the Trusts
In the late nineteenth and early twentieth century, a trust was known as a cartel or monopoly involved in creating agreements to fully control a product or industry. Some of these monopolies are protected under the constitution, but these trusts in which one exercised full control over a product or industry were new to Americans. Rapid industrialization, along with advances in technology and urban growth influenced the structures of businesses. The laissez faire policy, enforced by the government, was very beneficial as it increased capital, increased labor supply, and helped the national market grow. However, many trusts emerged as businesses were unregulated, in which two of the most considerable trusts were those of Andrew Carnegie (Steel industry) and John Davison Rockefeller (Oil industry.) Similar to other trusts, these two men would employ horizontal (buying the competition) and vertical ( controlling every business process) integration strategies to further e...