Should governments legislate to prevent monopolies

They violate the 4th amendment which grants americans their privacy. When we founded the U. S we were scared about having a super strong government that is why we set up the bill of rights in the first place to prevent from having a central government that was too powerful.

Should governments legislate to prevent monopolies

The societal and economic dangers of monopolies are clear. To combat the effects of these large corporations, the government has tried, through both legislation and court cases, to regulate monopolistic businesses.

Though the strategies that the US has followed have varied, the aim of curbing market hegemony has been relatively constant. Though examples of attempts at government regulation are widespread, three stand out from the rest: Most regulation in its early history revolved around the railroad industry.

At first, the responsibility of control of public industries fell on the individual states. However, the ineffectual legislation that was passed and the inability to control railroad monopolies made the need for federal regulation painfully apparent.

The passage of the Interstate Commerce Act in created the first interstate regulatory committee. Though this group was not extremely effective in curbing the practices of the railroad, the precedent for federal regulation had been set.

Should governments legislate to prevent monopolies

Later legislation, such as the Sherman and Clayton Anti-Trust Acts had more of an effect on large businesses. The latter bill created the Federal Trade Commissionwhich is the major regulatory body of monopolies today. The important question that arises from regulation is: Why does the government feel that it must control big businesses?

Does this not violate the principles of freedom outlined in the Constitution? Indeed, the government never tried to stifle a corporation simply because it was strong. Instead, regulation exists to preserve competition and the freedom for smaller companies to enter the market.

Should governments legislate to prevent monopolies

If one company controls the market share, smaller groups will never be able to flourish. For example, the dominance of Microsoft in recent years has raised the question of whether its practices are monopolistic. Because the corporation controls the majority of the market in nearly all of its markets, there is an overwhelming social pressure for regulation.

The earliest regulatory measures were not as focused on competition, however. The goal was to protect the consumer.

For example, the Grangers 19th Century farmers felt that they were being oppressed by unfair practices of the railroads. There was great social unrest in this population because of the practices of large corporations.

To avoid revolt and turmoil, the state government passed the Granger Laws. This group of legislation was essentially an attempt to appease the troubled farmers.

It was not until the end of the 19th Century and the beginning of the 20th that regulation made the turn toward preserving competition. Another trend in regulation is the unfortunate tendency of legislation to have little effect.Subsequent laws against “excessive” prices were more vague and, according to Rockoff, aimed to prevent “sales influenced by fraud, ignorance, or short-run monopolies rather than lowering.

Without a doubt, YES.

Should governments legislate to prevent monopolies

In just years, this government went from 13 independent colonies, to the birth of a central but greatly limited government, to a now huge, and powerful government that is rapidly growing each year. Monopolies create entry barriers, try to eliminate competitors and prevent the entry of new firms.

Consumers interests are greatly affected because of the growth of monopolies. They are forced to pay high prices for sub standard products as they do not have any other choice.

The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through price capping, yardstick competition and preventing the .

Should the government protect us against monopolies? - ConservativeHome's Platform

Government produce monopolies, they cannot prevent or stop them. Monopolies develop only under some kind of government protection. Like: A government tries to prevent foreign companies to enter local market and as result local monopolies start to .

A monopoly is the sole provider of a good or service. Monopolies prevent free trade and but sometimes they are needed. Federal and local governments regulate these industries to protect the consumer.

Companies are allowed to set prices to recoup their costs and a reasonable profit.

Top 3 Methods of Controlling Monopoly (With Diagram)