Question

Why did some Americans want trusts to be banned, and how did the government respond?

A) They wanted trusts banned because they believed they led to monopolies. The government responded with antitrust laws.
B) They wanted trusts banned because they believed they promoted competition. The government responded with support for trusts.
C) They wanted trusts banned because they had no impact on the economy. The government responded by ignoring their requests.
D) They wanted trusts banned because they believed they helped small businesses. The government responded with incentives for trusts.

Answer 1

Some Americans pushed for the banning of trusts as they led to monopolistic behavior, harming competition and consumers. The government introduced the Sherman Anti-Trust Act in 1890, a critical piece of antitrust legislation, to break up such trusts and maintain market fairness.

Step-by-step explanation:

Some Americans wanted trusts to be banned because they believed that trusts led to monopolies, which in turn reduced competition and allowed companies to increase prices or degrade the quality of their products without concern for consumer choice or market accountability.

The U.S. government responded by enacting the Sherman Anti-Trust Act in 1890, which aimed to target and break up these trusts that interfered with the free market and interstate commerce.

This act gave the federal government the power to dissolve corporations that were deemed to be "combinations in restraint of trade." The existence of antitrust laws, including the Sherman Anti-Trust Act, demonstrated the government's commitment to regulating anti-competitive practices and preserving market integrity, despite corporate claims that consolidation brought about efficiencies.