TRUST BUSTING Meaning and
Definition
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Trust busting refers to the act of breaking up or weakening large monopolistic corporations or combinations by means of legal action, regulatory measures, or other interventions. The term is derived from its historical context in which the United States government took steps to dismantle trusts during the early 20th century.
Trust busting became a prominent issue during the Progressive Era in America, where there was a growing concern over the concentration of economic power in the hands of a few powerful corporations, commonly referred to as trusts. These trusts held great control and dominance over various industries, stifling competition, and potentially harming consumer welfare. In response, the government sought to regulate and limit the power of these corporate trusts through trust busting measures.
Typically, trust busting involves legal actions initiated by government bodies, such as the Department of Justice, to enforce antitrust laws. This can include filing lawsuits against companies deemed to be participating in anti-competitive practices, seeking court injunctions, or pursuing settlements to break up monopolistic structures.
The objective of trust busting is to promote fair competition, prevent the abuse of market power, and protect consumers from monopolistic pricing or reduced choices. By dismantling or weakening monopolies, trust busting aims to create a more level playing field for smaller businesses and encourage innovation within the marketplace.
Overall, trust busting is a mechanism used by governments to ensure healthy market competition, preserve economic integrity, and prevent undue concentration of economic power in the hands of a few dominant entities.
Common Misspellings for TRUST BUSTING
- rrust busting
- frust busting
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- yrust busting
- 6rust busting
- 5rust busting
- teust busting
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- truat busting
Etymology of TRUST BUSTING
The phrase "trust busting" originated in the United States during the late 19th and early 20th centuries. It combines the words "trust" and "busting" to describe a policy or action of breaking up large corporations or monopolies, known as trusts, to promote competition and prevent their potential abuse of power.
The etymology of the word "trust" in this context goes back to the development of large business combinations and monopolistic practices in the late 19th century. Many industrialists and tycoons formed trusts, which were essentially large corporations that controlled multiple companies within a particular industry. These trusts often held a monopoly over key markets and had significant control over prices and distribution.
The word "trust" itself has a legal origin, deriving from trust law, which refers to a fiduciary relationship where one party holds property or assets on behalf of another.
Similar spelling words for TRUST BUSTING
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