Section 2
The Problem: Monopolies
🐙Standard Oil Cartoon, 1904
1904 political cartoon: Standard Oil as an octopus grabbing the U.S. Capitol & White House (Library of Congress, Public Domain)
🎩
John D. Rockefeller
Standard Oil founder
Standard Oil founder
⚖️
Sen. John Sherman
Authored 1890 Act
Authored 1890 Act
In the late 1800s, massive corporations called "trusts" controlled entire industries. With no competition, they charged whatever they wanted and crushed anyone who tried to compete.
One firm controls everythingNo rivals = no pressure to serve customers well.
Prices rise uncheckedConsumers must pay whatever the monopoly demands.
Innovation stallsWhy improve your product if no one can compete with you?
Small businesses get crushedMonopolists slash prices temporarily to drive rivals out, then raise them.
💡 Standard Oil: The Original Monopoly
Rockefeller controlled ~90% of U.S. oil refining by 1880 using secret railroad deals. In 1911, the Supreme Court broke Standard Oil into 34 companies — predecessors of Exxon, Chevron, and BP. This became the landmark model for all future antitrust enforcement.