Industrial Regulation: The Sherman Act Of 1914

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INDUSTRIAL REGULATION Industrial regulation focuses on control of businesses so that they produce economic outcomes that benefit society. These regulations were first started in the United States after the Civil War, where an expansion of business created monopolies and affected how consumers could purchase product. Governmental control was initiated through creation of regulations such as the Sherman Act of 1890, the Clayton Act of 1914. Regulation of industry affects the market by ensuring monopoly pricing doesn’t exist, which could negatively affect consumers and society. Monopolies harm the market by not allowing cost reductions as scene in a natural monopoly by avoiding high prices and restrictions in output of an unregulated monopoly.…show more content…
Natural Monopolies are commonly associated with public utilities such as local water and electricity providers. As an example electricity production requires a large amount of assets to obtain low costs to consumers. If the same market was divided among many producers unit cost to consumers would be uneconomical. Natural monopolies do not always benefit society thus resulting in public ownership, which takes the service and puts it in government control such as the Postal Service or Amtrak. ANTITRUST LAWS The Sherman Act of 1890 was created with the intention of investigating and pursuing trusts, companies and organizations who are involved in business activities that reduce competition in the market. The author of this act intended to “"To protect the consumers by preventing arrangements designed, or which tend, to advance the cost of goods to the consumer"i. The act can be broken down into two provisions:ii  Provision 1: Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared illegal”…show more content…
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