What economic reforms

Question

did Woodrow Wilson
make during his
presidency?
(The Legacy of the
Progressive Era)

Answer 1

During Woodrow Wilson's presidency, he implemented several economic reforms as part of the Progressive Era, aimed at regulating big businesses and promoting fair competition in the marketplace. Some of the key economic reforms Wilson implemented include:

1. The Federal Reserve Act of 1913: This legislation established the Federal Reserve System, which reformed the country's banking system and created a central bank to regulate the nation's monetary policy, issue currency, and supervise banking institutions. The Federal Reserve System aimed to provide a more stable and flexible financial system to prevent future economic crises.

2. The Clayton Antitrust Act of 1914: This law strengthened previous antitrust legislation, such as the Sherman Antitrust Act, by prohibiting certain business practices that restricted competition, such as price discrimination, exclusive dealing, and mergers that substantially lessened competition. The act also exempted labor unions from antitrust prosecution and clarified the legal definition of antitrust violations.

3. The Federal Trade Commission Act of 1914: This legislation created the Federal Trade Commission (FTC), an independent agency tasked with promoting fair competition and protecting consumers from unfair or deceptive business practices. The FTC was granted the authority to investigate and take enforcement actions against businesses engaged in anticompetitive behavior.

4. The Underwood Tariff Act of 1913: This law significantly reduced tariff rates to promote free trade and lower the cost of imported goods for American consumers. The act also introduced a federal income tax to make up for the lost revenue from tariff reductions, establishing the foundation for the modern income tax system.

Overall, these economic reforms sought to curtail the power of monopolies, promote fair competition, regulate the banking system, protect consumers, and ensure a more equitable distribution of wealth in the United States. Wilson's Progressive Era economic reforms laid the groundwork for future regulatory initiatives and shaped the development of the American economy in the 20th century.