Chapter 9-5 Wilson’s New Freedom ***Woodrow Wilson, like TR, and Taft believe the Federal Govt should use it’s power to regulate unfair business practices***

Objective: to learn about…. The progressive reforms of Woodrow Wilson’s administration.

This is important b/c/…. The Clayton Anti-trust Act, Federal Trade Commission, the Federal Income Tax (16th amend), and the Federal Reserve System are still important parts of our government that impact us today.

Focus Q Do you think the federal income tax is necessary? What do you think this money is spent on?

Chapter 9 Focus Questions #5 How successful would you say the Progressive Movement was at addressing the problems of American society in the early 1900’s?

Focus Q: Nov. 13 1. Was Prohibition necessary? NO-------------------------------------------------------YES 2. Should the govt. regulate big business? 3. Regulate the meatpacking industry?

Describe the key parts of the Clayton Antitrust Act (1914). ***promote competition in business*** Gompers (AFL Pres.) calls it labors Magna Carta Unions can exist Unions not held to anti-trust laws Strikes, boycotts, peaceful picketing ok

Clayton Antitrust Act (1914) strengthened the Sherman Anti-trust Act—certain business practices were illegal couldn’t own stock in another company if that created a monopoly company officials could be prosecuted for violations unions could exist and weren’t subject to antitrust laws strikes, boycotts, peaceful picketing legal injunctions against strikers illegal unless it threatened irreparable damage to property

What was the Federal Trade Commission (FTC, 1914) supposed to do? govt can regulate trade and punish unfair business practices—inaccurate labeling, etc. govt can issue “cease and desist” orders—400 under WW’s admin. Remember…..regulate, don’t destroy big business

Laugh with me…… What do you call the soft tissue between a shark's teeth? The slow swimmer. What are mixed feelings? Watching your mother-in-law backing up towards the edge of a cliff in your new BMW.

Why was a new tax system necessary? thought high tariffs helped create monopolies by decreasing competition Underwood Tariff (1913)—cuts tariffs—40% to 30% since Fed. revenues cut, had to replace them—federal income tax

What is a graduated (progressive) income tax? 1. 16th Amendment—fed. income tax on profits, income ***“graduated”—rate of taxation increases as income rises*** ranged from 1-6 % for incomes $4000 to $500,000 2. most factory workers, farmers exempt 1917—income from tax bringing in more $ than tariff did today, income taxes are fed. govts main source of revenue

Is a graduated tax is fair? Why? Yes, those w/ higher incomes have benefitted from our system more and should have to pay higher taxes. Also have much more disposable income (after housing, food) and can afford to pay more No, those w/ higher incomes have worked harder and smarter and shouldn’t be penalized w/ a higher tax rate

What were the purposes of the Federal Reserve System? Strengthen the way banks were run Regulate interest rates Way to quickly adjust the money supply ($ in circulation)

Federal Reserve System Federal Reserve Act—decentralized banking Divided nation into 12 districts A bank for banks short of cash Each district had a FR bank that served all national banks in that district FR banks could issue $ in emergencies Way to control $ supply ($ in circulation) 1 of WW’s most enduring programs

Define the 19th Amendment. 1920—19th Amend—women’s suffrage 72 years after Seneca Falls—Declaration of Sentiments (1848)

Wilson and Civil Rights—retreats on civil rights opposed federal anti-lynching laws opposed federal child labor laws—thought it unconstitutional racial matters—puts segregationists in charge of federal agencies—so segregation expands in WDC, the military, fed. govt. strongly opposed women’s suffrage

Why were presidents unwilling to publically support civil rights? b/c they wouldn’t get any Southern support for any of their programs, legislation, etc.

The Twilight of Progressivism WWI ends Progressive Movement The country thinks there are more important things to worry about

So…..there were lots of problems in the late 1800s and early 1900s… What are some problems that we struggle w/ today?

Progressive issues Alcohol……solved by…… Prohibition—18th Amendment, 1920

Progressive issues People need more political power…….solved by…… Initiative, referendum, recall and…. 17th Amendment—Direct Election of Senators, 1913

Progressive issues Big business created monopolies, trusts…..need to increase competition…. Clayton Anti-trust Act Sherman Anti-trust Act Regulate big businesses Corruption exposed by muckrakers

Progressive issues Need to conserve the environment…… TR sets up National Parks, wildlife refuges, etc.

Progressive issues Horrible conditions in meatpacking…. Meat Inspection Act, 1906

Progressive issues Drugs, harmful ingredients in medicines and food……. Pure Food and Drug Act, 1906

Progressive issues Women don’t have suffrage…… 19th Amendment, Women get right to vote, 1920

Progressive issues Federal govt. cuts tariffs (taxes on imports), so it needs to raise $...... 16th Amendment, Federal Income Tax, 1913