Reading: Progressive Reforms

President Wilson’s Progressive Reforms

President Wilson called his ideas for reform “The New Freedom.” They were a collection of laws that were intended to help the economy, stop companies from becoming monopolies, help workers receive fair treatment, and end child labor.

Federal Reserve Act of 1913

            Before Woodrow Wilson became president, the country went through the economic Panic of 1907. The economy started to do poorly, and many people started to believe that the wealthy, such as J.P. Morgan, controlled the nation’s money and economy.

            In 1913, President Wilson argued that it should be the government, and not the banks or the wealthy, which control the nation’s money and economy. The Federal Reserve Act of 1913 allows the government to control the nation’s money and to regulate banks and force them to be safer with people’s money. Many of the ideas of this act are still in use today.

Clayton Antitrust Act

President Wilson supported the Clayton Antitrust Act. The Clayton Antitrust Act gave the government more power to regulate (and sometimes break up) the big trusts and monopolies that were being created. It allowed the government to stop two companies from merging (joining together) if their joining together would create a monopoly. It also stopped businesses from being able to force other companies to give them unfair advantages in price.

Keating-Owen Act

            President Wilson supported the Keating-Owen Act, which allowed the government to regulate child labor. It prevented child workers from being able to work more than 8 hours in a day, and more than 6 days in a week. It was considered a huge in the movement to end child labor, but the Supreme Court later declared the law unconstitutional and it was overturned.

Adamson Act

            President Wilson supported the Adamson Act, which created a maximum 8-hour workday for interstate railroad workers and forced companies to pay them overtime for hours beyond that.

Federal Trade Commission

            President Wilson created the Federal Trade Commission. Its job was to investigate large companies who may be breaking the law and to stop from becoming monopolies, as well as stop any unfair treatment of workers.