The period in U.S. history, which lasted from the beginning of the Gilded age in 1870 through the Progressive era and up until the end of WW1, saw various economic developments. As in any country on the planet, the government had the main role in the economy, and its decisions significantly affected companies and individuals. In the late 19th century, the absence of regulations allowed large businesses to prosper, especially in the railroad industry; this success led to the introduction of government interference measures which negatively impacted many companies.
During 1870-1880, the general support for the laissez-faire principle on the part of the authorities enabled it to limit all kinds of tariffs and subsidies while still ensuring that the citizens have property rights. Such favorable circumstances coupled with technological advances which fueled new industrialization allowed numerous companies to form, resulting in the establishment of giants such as Standard Oil, railway companies, and many steel producers. The lack of regulations helped big companies to gradually monopolize their respective spheres, which caused a negative response from workers and small business owners who accused major industrialists of being “robber barons.” The unhappy working class who felt that they were underpaid, abused, and exploited by the large enterprises started calling for government interference.
This led to the beginning of the progressive era, which was notable for its significant presence of the government in the economy. The railroad industry was the first one to experience the effects of government regulations with the adoption of the Interstate Commerce Act of 1887. It prevented the companies in this sphere from price discriminating against people from the Southern states and ordered them to publish their shipping rates. The trend continued with the passing of the Sherman Antitrust Act, which outlawed cartels. During the beginning of the 20th century, agencies such as the Federal Trade Commission and the Food and Drug Administration were created, which started regulating even more businesses and subsequently imposing additional costs on them. The pinnacle of the progressive era was reached with the breakup of Standard Oil by Supreme Court for being recognized as a trust.
Thus, over the period of fifty years, the government completely changed its policies concerning business regulations which prevented many companies from advancing further and even existing.