1. 8.3 The Woodrow Wilson Years

3. I. Wilson’s Reforms A.Wanted to lower tariffs 1.Believed it would benefit both the consumers & the manufacturers 2.Pressure from foreign competition would force the U.S. manufacturers to improve their products & lower their price 3.Passed the Underwood Tariff, which reduced tariffs 4.To make up for lost revenue, Congress passed the 16 th Amendment, which created a federal income tax

4. I. Wilson’s Reforms… B.To restore confidence in the banking system, Wilson supported the creation of a federal reserve system 1.Federal Reserve Act created 12 regional banks under govt. supervision 2.The Board could control the money supply by raising & lowering interest rates

5. I. Wilson’s Reforms… C.Wanted to limit the power of trusts 1.Created the Federal Trade Commission (FTC) to monitor American business -tried to limit business activities that engaged in unfair trade practices, or those that hurt competition

6. I. Wilson’s Reforms… 2.Wanting tougher legislation against the trusts, Congress passed the Clayton Antitrust Act (1914) -outlawed practices that restricted competition -prevented companies from acquiring stock in another company -corrected the deficiencies in the Sherman Antitrust Act (1890)

7. II. Progressivism’s Legacy & Limits A.Expanded the role of the federal govt & power of the President in regulating the economy & solving social problems B.Failed to address racial & religious discrimination 1.W.E.B. DuBois & others founded the NAACP (1909) to demand full rights for African Americans 2.Jewish people lived in fear of mob violence

8. 8.3 Review Questions 1.What did Wilson think would lead American manufacturers to improve their products and lower prices? 2.How did the Underwood Tariff affect imported goods? 3.How does the Federal Reserve Board affect the economy? 4.What were the powers of the new Federal Trade Commission? 5.How did public opinion about the role of government shift during the Progressive Era?