191k views
2 votes
What arguments did supporters use What arguments did opponents of trusts use

User Ronnell
by
7.6k points

2 Answers

1 vote

Final answer:

In the late 19th century, supporters of trusts claimed that they could provide lower prices to consumers due to economies of scale, while opponents believed they could stifle competition and drive up prices, leading to the development of antitrust laws like the Sherman Anti-Trust Act to counter such practices.

Step-by-step explanation:

Arguments in Support and Opposition of Trusts

During the late 1800s, the issue of trusts and monopolies was a significant area of debate in the United States. Supporters of trusts argued that these large entities could leverage economies of scale and efficient planning, which would lead to lower prices for consumers due to the reduction in competition. Conversely, opponents of trusts, including small businesses and consumer advocates, pushed for the passage of the Sherman Anti-Trust Act. They believed this would curb the power of monopolies that could, without competition, freely increase prices and potentially yield higher profits while lacking in efficiency and innovation.

Corporations defended themselves from critics by emphasizing that there was a decrease in prices when companies merged under trusts. However, this was countered by accusations of unfair business practices. The Sherman Anti-Trust Act was a response to these issues, giving the federal government the power to dissolve corporations engaging in anti-competitive behaviors. Farmers and smaller producers felt dominated by these entities, which hindered their ability to compete fairly and economically survive.

Reflecting another aspect, opponents of socialism argued that workers should aim to improve their status through education and self-discipline, warning against demagogues promising unrealistic revolutions. Labor leaders contested that the critique against collective bargaining was a tactic to diminish the collective power of the working class. Both sides of the argument presented significant motivations, delineating the complexity of the antitrust movement in the United States.

User Vigneshwaren
by
7.8k points
6 votes
Supporters:

1. This is business NOT a church picnic
2. Social Darwinism allows for the smartest, shrewdest, and wisest to rise above the weak-minded and cowardly in the business arena
3. Trusts help regulate quality and supply for the public

Opponents:

1. Trusts can set prices for the public thus eliminating fair and healthy competition
2. Trusts violate the free market system upon which American business is based
3. Trusts take advantage of small businesses and eventually lead to their death and destruction
User Dhwanil Shah
by
7.4k points