Summary: The purpose of “A Question of Trust” is to let students simulate the origins of the era of trusts in American economic history. Acting as “captains of industry” they, too, will try to create monopoly power within their classroom oil industry. Their experience will challenge the common belief that the era of trust formation was evidence that Adam Smith’s analysis of capitalism was flawed. Students will discover for themselves that trusts were actually an affirmation of Smith’s theory. The three parts of “A Question of Trust” simulate three stages in 19th century United States economic history and three different efforts by business to escape the constraints of competition.
Overarching Questions:
- ECONOMICS: What is the proper role of government in the economy? (Especially with regard to economic crises, national defense/security, health and safety of the people, and economic development and practices.)
NJ Student Learning Standards for Social Studies:
- 6.1.12.EconEM.5.a: Assess the impact of governmental efforts to regulate industrial and financial systems in order to provide economic stability.
- 6.1.12.EconEM.5.a: Analyze the economic practices of corporations and monopolies regarding the production and marketing of goods and determine the positive or negative impact of these practices on individuals and the nation and the need for government regulations.
Link to Lessons: Activity 5: A Question of Trust - Foundation For Teaching Economics (fte.org)