How would breaking up Trusts and Monopolies help the American people?

By the late nineteenth century, big businesses and giant corporations had taken over the American economy. Consumers were forced to pay high prices for things they needed on a regular basis, and it became clear that reform of regulations in industry was required. The loudest outcry was against trusts and monopolies. Trusts are the organization of several businesses in the same industry and by joining forces, the trust controls production and distribution of a product or service, thereby limiting competition. Monopolies are businesses that have total control over a sector of the economy, including prices.

Trusts are problematic for several reasons. Monopolies develop from trusts and give total control of a specific industry to one group of companies. Owners and top-level executives of monopolies profit greatly, but smaller businesses and companies have no chance to make money at all. Trusts also upset the idea of capitalism, the economic theory upon which the American economy is built. In a capitalist society, all businesses have an equal opportunity to thrive based on competition. When monopolies and trusts exist, competition cannot.

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