Progressive Movement Practice Exam

What idea led to the establishment of the Interstate Commerce Commission and similar agencies?

1. Business activity must sometimes be regulated in the public interest.

2. Workers should be allowed to bargain with owners for working conditions.

3. Domestic industry should be protected from foreign competition.

4. The economy works best without government regulation.

The correct answer is: Business activity must sometimes be regulated in the public interest.

The establishment of the Interstate Commerce Commission (ICC) was driven by the idea that business activity must sometimes be regulated in the public interest. This concept emerged during the Progressive Era, a time marked by the recognition that unchecked business practices could lead to monopolies, exploitation, and injustices that harmed the public. The ICC was created in response to growing concerns about the uncontrolled practices of railroads, which had significant power and influence over transportation rates and access. It was believed that regulation was necessary to ensure fair practices, reasonable rates, and to promote competition, thereby protecting consumers and smaller businesses from the potential abuses of larger corporations. This regulatory framework marked a shift in thinking about the role of government in the economy, emphasizing the balance between allowing business to function while also ensuring that the broader public interest was safeguarded. This idea laid the groundwork for future regulatory agencies and a more active role of government in overseeing aspects of the economy that were deemed vital to the well-being of society as a whole.