Wilson’s New Freedom
- Roosevelt and Taft
- Introduced the country to forceful Progressive Presidents
- Wilson and the Democrats Prevail
- Woodrow Wilson
- Expanded the power of the presidency to promote a far-reaching reform agenda
- His economic and antitrust measures are still important in American life today
- 1912 - republican and progressive parties split
- Allowed Wilson and Democrats to win election
- New Freedom
- Similar to Roosevelt’s New Nationalism
- Place strict government controls on corporations
- Did not win popular vote
- But had 4 times the amount of electoral votes
- Wilson Regulates the Economy
- Attacked the“triple wall of privilege”
- Tariffs
- Banks
- Trusts
- These blocked businesses from being free
- Congress Lowers Tariffs and Raises Taxes
- Wilson
- Prevent big manufacturers from unfairly charging high prices on customers
- Lower tariffs on goods imported from other countries
- Underwood Tariff Act of 1913 - created a graduated income tax
- Wealthy people pay a higher percentage of their income than do poor people
- Money made from income tax made up for the money lost by lower tariffs on imports
- Federal Reserve Act
- Reform the banking system
- No central authority to supervise banks
- Interest rates could vary greatly
- Wealthy bankers had a great deal of control over the national, state, and local banks’ reserve funds
- Banks did not have access to all the money if people came to withdraw money
- Federal Reserve Act 1913 - national banks were placed under the control of a Federal Reserve Board
- Set up regional banks to hold the reserve funds from commercial banks
- Helps protect American economy from having too much money in the hands of one person, bank, or region
- Also set up interest rate than banks pay to borrow from other banks
- Make sure banks are well run
- Wilson Strengthens Antitrust Regulation
- Federal Trade Commission (FTC) - members were nominated by the President to monitor business practices that might lead to monopoly
- Also in charge of watching out for false advertising or dishonest labeling
- Clayton Antitrust Act - strengthened actions in which activities businesses could not engage
- Both laws are still in effect today
- Protects businesses and consumers from abusive business activities
- Worker’s Rights Protected
- Result of Clayton Antitrust Act
- Workers could now organize (form unions) more freely
- Samuel Gompers
- Leader of American Federation of Labor (AFL)
- Workers Compensation Act - 1916
- Gave wages to temporarily disabled civil employees
- Adamson Act - limited railroad workers to working an 8 hour day
- Ludlow Massacre
- Wilson did not always support organized labor
- 1913 - coal miners in Ludlow, Colorado
- Demanded
- Safer conditions
- Higher pay
- Right to form union
- Coal company refused, workers walked away from work
- Workers and families formed small tent like community
- Strike continued into winter
- April 20, 1914 - National Guard ordered to city
- Opened fire on the tent city
- Burned tents
- 26 men, women, children killed
Progressivism Leaves a Lasting Legacy
- Political reforms of the Progressives had lasting effects on the American political system
- 19th amendment
- Federal government grew to offer more protection to Americans private lives
- Gained more control over people’s lives
- American economy
- Antitrust laws
- Federal Reserve Board
- Watched closely over the economy
- Wilson and Roosevelt
- Protected consumers
- Natural Resources
- Expanded government role
- West
- Federal action on dams, national parks, resource use