When the federal government decided to stop trying to regulate big business during the industrial era, the Act was birthed. Laissez-faire approaches to government has led to huge monopolies getting put into trusts, which subsequently hacked the market during the second half of the 1890s.
If you’re a company that is competitive, the costs will be low, and there’ll be more equal distribution of items and services. Monopolies may make the market monopolistic and raise prices as one entity controls all the resources.
In 1890, The Sherman Anti-Trust Act was passed that made trust, monopoly or cartel, which gets in the way of free competition unlawful. The government can break up the monopoly to ensure fair competition in an industry.
The Act was not an immediate achievement, since during the initial decade, it was used to stifle unions and divide them. Another explanation is that the republican government wanted to ensure that profits from corporations were flowing by raising prices. Though these tariffs had been effective to stop foreign competitors from entering the country, they didn’t allow us to examine our own economy or government. Listen to the entire video to find out more about the history of this country.