WILSON’S NEW FREEDOM

ELECTION OF 1912 From left Debs – socialist (6% of popular vote) Taft – Republican (23.2% of popular vote) Roosevelt – Bull Moose (27.4% of popular vote) Wilson – Democrat (41.8% of popular vote)

ELECTION OF 1912

WILSON’S NEW FREEDOM Attack the Triple Wall of Privilege: Trusts Tariffs Banks But he was quite the racist… This was not part of New Freedom but he even segregated gov’t offices

TAKING CARE OF TRUSTS Trusts not dangerous as long as they did not engage in unfair practices (agreed w/TR) He persuaded Congress to create the Federal Trade Commission in 1914 Watchdog agency to investigate unfair business practices Look out for false advertising and labeling Clayton Anti-Trust Act (1914) – outlined what companies could not do Cannot pick up another company’s stock if it would create a monopoly Legal action against those who break the law Labor unions not subject to antitrust laws Made peaceful picketing, boycotts, etc…legal

CLAYTON GOES EVEN FURTHER B/c labor unions not subject to antitrust laws Sam Gompers called it the “Magna Carta” of labor Workingmen’s Compensation Act (1916 ): wages to temporarily disabled civil service employees Adamson Act (1916) : limited RR workers’ days to 8 hours after RR owners wouldn’t agree to Wilson’s proposals Ludlow Massacre: Wilson not 100% supportive Mine workers went on strike, were evicted from company housing and set up a tent city near the mines CO Nat’l Guard called in after months of strike and opened fired on the strikers Wilson sent federal troops to break up the fighting and end the strike

TARIFFS Lower tariff rates to decrease the power of big businesses Keep them from being able to charge high prices by lowering tariffs ∴ competition from abroad Wilson overcame big business lobbyists by encouraging the ppl to carefully monitor their Senator’s vote Congress passed the Underwood Tariff Bill : cut tariffs and included a provision for a graduated income tax made possible by the….16 th Amendment 16 th Amendment Graduated income tax (needed to make up for the reduced tariffs) Wealthy to pay a higher percentage of their income in taxes Now our gov’ts main revenue source

FINANCIAL REFORM Federal Reserve Act of 1913 – established the Federal Reserve System 12 decentralized district banks (we have one in CLE!) They will hold the reserve funds for local commercial banks Sets the interest rate for banks who borrow $ from other banks Supervises banks VERY IMPORTANT ACT!

WHAT DOES THE FED DO? Helps keep our economy stable by: Controlling the money supply Adjusting interest rates given to banks Goal is to fight inflation and unemployment Still in full swing today! Current Chair: Janet Yellen Quick bit about our $ today…

SOCIAL ISSUES PROGRESSIVISM 19 th Amendment – Women received the right to vote Better working conditions for immigrants Americanization Civil Rights issues ignored: Wilson opposed anti-lynching legislation (state’s rights issue) White, southerners appointed to Wilson’s cabinet who extended segregation

LEGACY OF PROGRESSIVISM Voter influence expanded: initiative, recall, referendum, 19 th Amendment, direct primary Increased gov’t intervention in private life Anti-trust laws Federal Reserve Regulation of some businesses Gov’t oversees natural resources …Ends w/ WWI  we will understand how this all comes into play next unit!