1. 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***

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

3. 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.

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

5. 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?

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

7. 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

8. 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

9. 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

10. 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.

11. 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

12. 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

13. 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

14. 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)

15. 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

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

18. 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

19. 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.

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

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

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

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

24. 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

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

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

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

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

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