Progressivism and Wilson's New Freedom

• Progressivism and Wilson's mew freedom


  Ideas and influence of Roosevelt

  Was McKinley's vice president so took over after his assassination in Sep 1901. He felt that fed gov needed more powers in order to act effectively as US developed economically. He introduced a programme of reform known as Square Deal.
• Progressive and Wilson’s New Freedom

  Ideas and Influence of Roosevelt 2 (anti trust leg)

  Sherman Act 1890 - used to embark on 44 anti-trust prosecutions after succeeding in attempts to prevent Northern Securities from controlling too many railroads.
• Progressivism and Wilson’s New Freedom

  Ideas and influence of Roosevelt 3 (anti-trust leg)

  Elkins Act, 1903 - empowered Interstate Commerce Commission to impose heavy fines on both railroad companies who offered rebates to big business concerns, and on the concerns who accepted them.
• Progressivism and Wilson’s New Freedom

  Ideas and influence of Roosevelt 4 (anti-trust leg)

  Hepburn Act, 1906 - empowered interstate Commerce Commission, giving it authority to set max railroad rates and inspect companies’ records. However, opposition, particularly in Senate, and reluctance to support Commission decisions in Supreme Court reduced the effectiveness of these laws: the trust lobby was still very powerful.
• Progressivism and Wilson’s New Freedom

  Ideas and influence of Roosevelt 5 (arbitration)

  Gained popularity among working classes for arbitration in 1902 anthracite coal strike. Employers had locked out miners demanding better conditions and pay. Roosevelt summoned both sides to Washington and pressurised the employers to come to an agreement.
• Progressivism and Wilson’s New Freedom

  Ideas and influence of Taft.

  More methodical than Roosevelt, and many felt progressivism lost impetus during his presidency. However, did promote anti-trust leg and introduce 8 hour day for gov employees and mine safety leg.
• Progressivism and Wilson’s New Freedom

  Wilson's New Freedom

  Won 1912 election. Was an academic expert on US gov, and committed to reform and modernisation. Called his programme the 'New Freedom'
• Progressivism and Wilson’s New Freedom

  Wilson's New Freedom 2

  Underwood tariff, Oct 1913 - reduced many customs duties and freed other items entirely (including wool, food, iron and steel, shoes and machinery). Could all be produced more cheaply in USA than abroad so didn't need protection from foreign competition. Loss of gov revenue compensated by intro in 1913 of federal income tax.
• Progressivism and Wilson’s New Freedom

  Wilson's New Freedom 3

  Federal Reserve Act, 1913 - Created for the first time a centralised banking system in USA. Twelve banking districts created, each under supervision of a Federal Reserve Bank. The Federal Reserve Bank in Washington was at the centre of the system. Centralised system enabled the FRB to control the monetary supply by setting rates at which other banks could borrow. Could therefore address inflation by restricting borrowing through high interest rates and encourage it in times of deflation by reducing it.
• Progressivism and Wilson’s New Freedom

  Wilson's New Freedom 4 (anti-trust leg)

  Federal Trade Commission, 1914 - formed to investigate corporations and 'unfair practices', although was weakened by lack of definition of 'unfair'.
• Progressivism and Wilson’s New Freedom

  Wilson's New Freedom 5 (anti-trust leg)

  Clayton Anti-Trust Act, 1914 - Made certain business practices illegal:

  • 'price fixing' to foster monopolies
  • 'tying' arrangements whereby retailers were forbidden to handle the products of their main suppliers' rivals.