The establishment of the Interstate Commerce Commission in 1887 demonstrated the government's increasing involvement in regulating interstate trade. The ICC was created in response to public concerns over unfair practices and monopolistic behavior in the railroad industry. The commission's main objective was to ensure fair rates, prevent discrimination, and promote competition among railroads. By regulating interstate commerce, the ICC sought to protect the interests of both businesses and consumers.
2. Passage of the Sherman Antitrust Act:
The Sherman Antitrust Act of 1890 was a significant piece of legislation that reflected a shift in the government's approach to controlling monopolies and promoting fair competition. The act prohibited monopolies, trusts, and other combinations that substantially restrained trade or commerce in the United States. The passage of the Sherman Act showed the government's commitment to preventing the concentration of economic power in the hands of a few corporations and preserving competitive markets.
Here are some key points highlighted by the creation of the ICC and the passage of the Sherman Antitrust Act:
- Government's Role in Regulating Commerce: Both actions demonstrated the increased involvement of the federal government in regulating economic activities, particularly in industries that had significant interstate impact.
- Protecting Competition and Consumers: The ICC and the Sherman Act aimed to protect competition and safeguard the interests of consumers by preventing monopolies, unfair business practices, and excessive market power.
- Addressing Public Concerns: The creation of the ICC and the passage of the Sherman Act were responses to public concerns about the negative effects of unregulated markets, such as high prices, poor service, and lack of choice.
- Balancing Business and Public Interests: The ICC and the Sherman Act sought to balance the interests of businesses, encouraging fair competition and economic growth, while also ensuring that these activities did not harm the broader public interest.
- Establishing Legal Frameworks: The ICC and the Sherman Act provided legal frameworks for enforcing competition laws and regulating industries, setting precedents for future antitrust legislation and enforcement.