Many of you are most likely familiar with the famous board game, “Monopoly.” If you are not, the goal of the game is to control the ownership of the entire board, charging ever higher prices on your real estate until your competitors are bankrupt. In the so-called American “Gilded Age,” citizens struggled to fight the power of corporate monopolies and the price gouging and other unfair practices they introduced. A desire to bring order to society, regulation to competitors, and rationality to the financial markets eventually resulted in an amalgamation of political groups under the banner of Progressivism.
Students of American History at Benton Community recently learned these old lessons of monopoly, power, and reform as they studied the American Industrial Revolution and the subsequent Progressive Age. The students engaged in a simulation that recreated the industrial revolution and resulted in some crafty tycoons to gain their riches while other students languished in poverty. In participating in this game as well as their studies of the reactions to monopoly power the students uncovered what some consider to be the 4th branch of American government: Independent Regulatory Agencies. These agencies, though they are still bound by the laws of the legislative branch and staffed through the executive, function independently of the existing three branches while regulating many aspects of American life. One such example, perhaps to the frustration of potential homebuyers, is the Federal Reserve Bank – which indirectly controls interest rates across its regional banking system.
Thanks to the Progressive movement, regulatory agencies now exist in all 50 states and directly impact our lives. In Benton County, a major energy supplier recently raised their electricity rates. This rate increase was first going to be higher, until the Iowa Utilities Commission approved a settlement between several parties to reduce the price jump. A similar story plays out in many areas of our economy. By exploring the origins of these regulatory agencies, our students can better understand the relationship between consumer, business, and government. They also gain an understanding of the forces that are driving prices for the necessary goods we all purchase.