Progressive Era Pt 3: Economic Reforms

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Presentation transcript:

Progressive Era Pt 3: Economic Reforms

Muckrakers (again) Muckrakers exposed the problems Ida Tarbell- used investigative journalism Exposed monopolistic practices in Rockefeller’s oil company Led to government trying to bust it and other trusts Upton Sinclair- The Jungle- novel about meat packing industry; showed how disgusting it was Activists will attempt to solve the problems How did muckrakers impact public opinion? How did that influence the government?

Upton Sinclair Ida Tarbell

Government Responds People demand government intervention to stop abuses, problems President Theodore Roosevelt proposed his “Square Deal” to address major problems Has 3 parts: Consumer protection: protecting the people from bad products/companies Control of corporations: stopping monopolies/unfair practices Conservation of natural resources: saving nature! Pres Woodrow Wilson continued policies of Roosevelt and added some New Freedom

Consumer Protection The gov made laws to protect customers from bad businesses or dangerous products Meat Inspection Act- because of The Jungle Pure Food and Drug Act Required accurate labeling of ingredients, strict sanitary conditions, and a rating system to meat

Control of Corporations Government got aggressive against trusts and monopolies Roosevelt nicknamed “Trustbuster” Filed 42 antitrust actions- would break up monopolies into smaller companies- but didn’t think all monopolies were bad Strengthened the Interstate Commerce Commission Wilson continued fighting trusts Clayton Antitrust Act- to regulate trusts and monopolies Strengthened Sherman Antitrust Act Prevented government from using anti-trust legislation against unions Protected Unions by preventing courts from ending strike Federal Trade Commission- FTC- used to prevent unfair business practices Investigates businesses who do shady things What were the costs and benefits of using anti-trust laws to break up big businesses?

Conservation of Nature Roosevelt loved the outdoors- thought it needed to be conserved for future use Forest Reserve Act- allows president to set aside land for public use Woodrow Wilson- created National Park System- Yellowstone National Park was 1st

President Wilson’s New Freedom New Freedom: wanted to encourage competition, “free” society from big business, privileges for wealthy Federal Reserve Act- goal was to end “panics” from Gilded Age *** still around! Local banks put reserve money in reserve banks. Controlled money supply- so banks wouldn’t run out (Bankers Bank) Federal Farm Loan Board- loans to farmers. Created regional farm loan banks 16th Amendment- Income Tax; created graduated tax directly on people Richer people paid higher rate Which political group advocated for federal loans for farmers and a graduated income tax before the Progressive Era?

Federal Reserve Banks

Big Ideas What did the government do to address the problems of big business? How did the government change the tax system? Why did they change it? How did the economic reforms affect the American people overall?