As the Gilded Age winded down, the great business empires were continually frustrtated by their failure to achieve either monopoly or industry cartels. US Steel, Standard Oil and their ilk were enormously wealthy, but unceasing competition were starting to contract profits of these unwieldy behemoths. And they did what every good businessman in trouble does: ask the government for help. And although there was much dis-agreement between business leaders, regulators and the Presidents, the major continuity remained clear: to cartelize each industry to provide "stability". Competition is war, after all, and war is Hell.
A good example is Teddy Roosevelt's Pure Food and Drug Laws. The Jungle by Upton Sinclair had created a furor for clean food laws. No one seemed to notice that this wasn't the point of the novel, nor (as Sinclair points out in the novels) was the industry opposed to it. The Meat Trust couldn't sell their disgusting products in foregin markets, they had been entirely blocked, and The Jungle was giving them a ton of bad PR. So the Bull-Moose himself stepped in. With the new FDA seal of approval, foregin markets allowed American meat in again, and the public's disgust began to subside. Was there in any improvment in the quality of the meat? In some cases, marginal improvements, more often than not though the regulators worked at the discretion of the Meat Trust.
And so it goes. When Populist outrage (justifiably) grew against the "Money Trust", the handful of super banks running the economy, when recessions followed recession without sight in end, business people began writing proposals to "stabilize" the banking industry. Legislation first drafted by Chambers of Commerce would end up getting proposed in Congress. And that's where the Federal Reserve came from. And so it goes, again and again. The public is outraged, as they usually should be, but any attempt at "reform" is drafted and supervised by the very people who are being "reformed", conforming to very narrow lines of thought, and although concessions to the public are usually made, the winners are always the same.
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