Readiness standards comprise 65% of the U. S. History Test

1. Readiness standards comprise 65% of the U. S. History Test 15 B

2. Readiness Standard (15)The student understands domestic & foreign issues related to U. S. economic growth from the 1870s to 1920. The Student is expected to: (B) Describe the changing relationship between the federal government & private business, including the costs & benefits of laissez-faire, anti trust acts, the Interstate Commerce Act, & the Pure Food & Drug Act

3. Readiness Standard (15)The student understands domestic & foreign issues related to U. S. economic growth from the 1870s to 1920. The Student is expected to: (B) 1 Describe the changing relationship between the federal government & private business, including the costs & benefits of laissez-faire

4. Pick your poison . . . or the lesser of two evils Laissez-faire, free-market capitalism is the worst economic system ever devised by man . . . . . . except for all the other economic systems ever devised by man

5. The economy functions best when left completely unregulated by government or the external controls of man The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product. Prices in a free market are set by competition between producers . . . . . . and consequently, the consumer is protected as the forces of the unregulated market will prevent product prices from exceeding what the natural law of supply & demand will allow

6. Supply & demand 101 • If demand increases and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. • If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. • If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price. • If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher equilibrium price.

7. Iron Law of Wages David Ricardo’sThe Iron Law of Wages is about the relation between the laborer’s wages and the price of goods. Ricardo’s says “Labor, like all other things which are purchased and sold . . . has its natural and its market price”. He argues the rise and fall of the price of labor is determined by many factors. The first factor is the salary’s power to satisfy the laborer’s need, and since he must be paid enough to buy his necessities such as food and clothing, his wage is regulated indirectly by the prices of his necessities. The second factor is the availability of labor. When the number of laborers increases, labor becomes cheap and the wages decrease and vice versa. The third factor is as investment capital increases, the prices of labor will also increase. Smith, Malthus, & Ricardo

8. The economy functions best when left completely unregulated by government or the external controls of man However, an economy left completely unregulated tends to degenerate into monopoly . . . and monopoly, by very definition undermines the free market economy that allowed it to come into existence

9. “If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself. A dependence on the people is, no doubt, the primary control on the government; but experience has taught mankind the necessity of auxiliary precautions.” James Madison, Federalist Paper No. 51 Similarly, an unregulated economy left to itself inevitably produces excesses that destroy the very system that called it into existence. As government requires the occasional “course correction,” so does the economy.

10. The “Trick” is knowing where to draw the line between government regulation & a market left completely to itself The focus of Readiness Standard 15 B is to offer examples of where past governments—in this case, those at the turn of the 20th century—chose to draw that line

12. Election of 1904 • TR won 57% of the vote to Democratic candidate Alton B. Parker’s 38% • The victory allayed TR’s fears that he was but an “accidental president” • His victory opened the way for a comprehensive reform program that began in 1904

13. Roosevelt as the “Trust Buster” McKinley’s death opened the way for TR to act as a Progressive who reformed American society as no other president before him.

14. TR’s Domestic Reforms • Elkins Act (1903) • Hepburn Act (1906) • Pure Food and Drug Act (1906) • Meat Inspection Act (1906)

15. Readiness Standard (15)The student understands domestic & foreign issues related to U. S. economic growth from the 1870s to 1920. The Student is expected to: (B) 4 Describe the changing relationship between the federal government & private business, including the Pure Food & Drug Act

16. Pure Food and Drug Act (1906) Got phony drugs off the market Muckraker Samuel Hopkins Adams (left) indicted fraud of countless false medicines in a series of sensationalist articles that appeared in Collier’s magazine. Required manufacturers to list certain ingredients on labels of medicines

17. Meat Inspection Act (1906) • Inspired by Upton Sinclair’s The Jungle,TR ordered an investigation into the evils of the meatpacking industry • Established rules for sanitary meatpacking and government inspection of meat products

18. The Pure Food and Drug Act of 1906 was the first of a series of significant consumer protection laws enacted by the Federal Government in the twentieth century and led to the creation of the Food and Drug Administration. Its main purpose was to ban foreign and interstate traffic in adulterated or mislabeled food and drug products, and it directed the U.S. Bureau of Chemistry to inspect products and refer offenders to prosecutors. The Pure Food and Drug Act of 1906 was the first of a series of significant consumer protection laws enacted by the Federal Government in the twentieth century and led to the creation of the Food and Drug Administration. Its main purpose was to ban foreign and interstate traffic in adulterated or mislabeled food and drug products, and it directed the U.S. Bureau of Chemistry to inspect products and refer offenders to prosecutors. It required that active ingredients be placed on the label of a drug’s packaging and that drugs could not fall below purity levels established by The United States Pharmacopeia or The National Formulary. The Jungle by Upton Sinclair was an inspirational piece that kept the public’s attention on the important issue of unsanitary meat processing plants that later formed the Pure Food and Drug Act. It required that active ingredients be placed on the label of a drug’s packaging and that drugs could not fall below purity levels established by The United States Pharmacopeia or The National Formulary. The Jungle by Upton Sinclair was an inspirational piece that kept the public’s attention on the important issue of unsanitary meat processing plants that later formed the Pure Food and Drug Act.

19. The Pure Food and Drug Act of 1906 was the first federal law regulating foods and drugs. The 1906 Act’s reach was limited to foods and drugs moving in interstate commerce. Although the law drew upon many precedents, provisions, and legal experiments pioneered in individual states, the federal law defined “misbranding” and “adulteration” for the first time and prescribed penalties for each. The law recognized the U.S. Pharmacopeia and the National Formulary as standards authorities for drugs, but made no similar provision for federal food standards. The law was principally a “truth in labeling” law designed to raise standards in the food and drug industries and protect the reputations and pocketbooks of honest businessmen. The Pure Food and Drug Act of 1906 was the first federal law regulating foods and drugs. The 1906 Act’s reach was limited to foods and drugs moving in interstate commerce. Although the law drew upon many precedents, provisions, and legal experiments pioneered in individual states, the federal law defined “misbranding” and “adulteration” for the first time and prescribed penalties for each. The law recognized the U.S. Pharmacopeia and the National Formulary as standards authorities for drugs, but made no similar provision for federal food standards. The law was principally a “truth in labeling” law designed to raise standards in the food and drug industries and protect the reputations and pocketbooks of honest businessmen.

20. On June 30, 1906, President Theodore Roosevelt signed into law the Meat Inspection Act and Pure Food and Drug Act which provided for federal inspection of meat products and prohibited the manufacture, sale, or transportation of adulterated food products.  On June 30, 1906, President Theodore Roosevelt signed into law the Meat Inspection Act and Pure Food and Drug Act which provided for federal inspection of meat products and prohibited the manufacture, sale, or transportation of adulterated food products. 

21. The Acts arose in part due to articles and exposés written by muckrakers, like Upton Sinclair, whose popular 1906 novel The Jungle contains hair-raising descriptions of the ways in which meat was produced in Chicago slaughterhouses and stockyards.  The Acts arose in part due to articles and exposés written by muckrakers, like Upton Sinclair, whose popular 1906 novel The Junglecontains hair-raising descriptions of the ways in which meat was produced in Chicago slaughterhouses and stockyards.  Sinclair described how dead rats, putrid meat, and poisoned rat bait were routinely shoveled into sausage-grinding machines, how bribed inspectors turned a blind eye when diseased cows were slaughtered for beef, and how filth and guts were swept off the floor and then packaged and sold as “potted ham.” Sinclair described how dead rats, putrid meat, and poisoned rat bait were routinely shoveled into sausage-grinding machines, how bribed inspectors turned a blind eye when diseased cows were slaughtered for beef, and how filth and guts were swept off the floor and then packaged and sold as “potted ham.” 

22. An instant best-seller, Sinclair’s book reeked with the stink of the Chicago stockyards. He told how dead rats were shoveled into sausage-grinding machines; how bribed inspectors looked the other way when diseased cows were slaughtered for beef, and how filth and guts were swept off the floor and packaged as “potted ham.” An instant best-seller, Sinclair’s book reeked with the stink of the Chicago stockyards. He told how dead rats were shoveled into sausage-grinding machines; how bribed inspectors looked the other way when diseased cows were slaughtered for beef, and how filth and guts were swept off the floor and packaged as “potted ham.” The Jungle, in all its sordid detail, was soon acclaimed as the most revolutionary piece of fiction of the age. In London, future Prime Minister Winston Churchill said the book “pierces the thickest skull and most leathery heart.” The Jungle, in all its sordid detail, was soon acclaimed as the most revolutionary piece of fiction of the age. In London, future Prime Minister Winston Churchill said the book “pierces the thickest skull and most leathery heart.”

23. President Theodore Roosevelt was sickened after reading an advance copy. He called upon Congress to pass a law establishing the Food and Drug Administration and, for the first time, setting up federal inspection standards for meat. President Theodore Roosevelt was sickened after reading an advance copy. He called upon Congress to pass a law establishing the Food and Drug Administration and, for the first time, setting up federal inspection standards for meat. Roosevelt sent his own agents to Chicago to investigate whether meat packing was as bad as Sinclair described. The conditions were actually a hundred times worse, the agents reported back. Roosevelt sent his own agents to Chicago to investigate whether meat packing was as bad as Sinclair described. The conditions were actually a hundred times worse, the agents reported back.

24. The president invited Sinclair to the White House and solicited his advice on how to make inspections safer. By June 30, Congress had passed the Pure Food and Drug Act, cracking down on unsafe food and patent medicines, and the Meat Inspection Act. To this day, our hamburgers, chicken patties and other meats are safeguarded by the same law. Roosevelt was so taken with Sinclair that he coined the term “muckrakers” to describe him and other reformist crusaders, even though the president’s phrase was not meant to be wholly complimentary. Roosevelt was so taken with Sinclair that he coined the term “muckrakers” to describe him and other reformist crusaders, even though the president’s phrase was not meant to be wholly complimentary.

25. Muckraker, of course, is a term that is applied to those novelists and journalists who sought to expose the corruption of American business and politics in the early twentieth century. It was President Roosevelt who first coined the term in a 1906 speech in which he compared writers like Sinclair to the “Man with the Muck-rake” (a character in John Bunyan’s Pilgrim's Progress) who was so focused on “raking the filth at his feet” that he failed to look up and “behold the celestial crown.”  Muckraker, of course, is a term that is applied to those novelists and journalists who sought to expose the corruption of American business and politics in the early twentieth century. It was President Roosevelt who first coined the term in a 1906 speech in which he compared writers like Sinclair to the “Man with the Muck-rake” (a character in John Bunyan’s Pilgrim's Progress) who was so focused on “raking the filth at his feet” that he failed to look up and “behold the celestial crown.” 

26. Readiness Standard (15)The student understands domestic & foreign issues related to U. S. economic growth from the 1870s to 1920. The Student is expected to: (B) 2 Describe the changing relationship between the federal government & private business, including anti- trust acts

27. United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. The main statutes are the Sherman Act 1890, the Clayton Act 1914and the Federal Trade Commission Act 1914. United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. The main statutes are the Sherman Act 1890, the Clayton Act 1914 and the Federal Trade Commission Act 1914. These Acts, first, restrict the formation of cartels and prohibit other collusive practices regarded as being in restraint of trade. Second, they restrict the mergers and acquisitions of organizations which could substantially lessen competition. Third, they prohibit the creation of a monopoly and the abuse of monopoly power. These Acts, first, restrict the formation of cartels and prohibit other collusive practices regarded as being in restraint of trade. Second, they restrict the mergers and acquisitions of organizations which could substantially lessen competition. Third, they prohibit the creation of a monopoly and the abuse of monopoly power.

28. The Federal Trade Commission, the US Department of Justice, state governments and private parties who are sufficiently affected may all bring actions in the courts to enforce the antitrust laws. The scope of antitrust laws, and the degree they should interfere in business freedom, or protect smaller businesses, communities and consumers, are strongly debated. One view, mostly closely associated with the “Chicago School of economics” suggests that antitrust laws should focus solely on the benefits to consumers and overall efficiency, while a broad range of legal and economic theory sees the role of antitrust laws as also controlling economic power in the public interest. The Federal Trade Commission, the US Department of Justice, state governments and private parties who are sufficiently affected may all bring actions in the courts to enforce the antitrust laws. The scope of antitrust laws, and the degree they should interfere in business freedom, or protect smaller businesses, communities and consumers, are strongly debated. One view, mostly closely associated with the “Chicago School of economics” suggests that antitrust laws should focus solely on the benefits to consumers and overall efficiency, while a broad range of legal and economic theory sees the role of antitrust laws as also controlling economic power in the public interest.

29. Although “trust” has a specific legal meaning (where one person holds property for the benefit of another), in the late 19th century the word was commonly used to denote big business. Large manufacturing conglomerates emerged in great numbers in the 1880s and 1890s, and were perceived to have excessive economic power. The Interstate Commerce Act of 1887 began a shift towards federal rather than state regulation of big business. It was followed by the Sherman Antitrust Act of 1890, the Clayton Antitrust Act and the Federal Trade Commission Act of 1914, the Robinson-Patman Act of 1936, and the Celler-Kefauver Act of 1950. Although “trust” has a specific legal meaning (where one person holds property for the benefit of another), in the late 19th century the word was commonly used to denote big business. Large manufacturing conglomerates emerged in great numbers in the 1880s and 1890s, and were perceived to have excessive economic power. The Interstate Commerce Act of 1887 began a shift towards federal rather than state regulation of big business. It was followed by the Sherman Antitrust Act of 1890, the Clayton Antitrust Act and the Federal Trade Commission Act of 1914, the Robinson-Patman Act of 1936, and the Celler-Kefauver Act of 1950. Although “trust” has a specific legal meaning (where one person holds property for the benefit of another), in the late 19th century the word was commonly used to denote big business. Large manufacturing conglomerates emerged in great numbers in the 1880s and 1890s, and were perceived to have excessive economic power. The Interstate Commerce Act of 1887 began a shift towards federal rather than state regulation of big business. It was followed by the Sherman Antitrust Act of 1890, the Clayton Antitrust Act and the Federal Trade Commission Act of 1914, the Robinson-Patman Act of 1936, and the Celler-Kefauver Act of 1950. x Indeed, at this time hundreds of small short-line railroads were being bought up and consolidated into giant systems. (Separate laws and policies emerged regarding railroads and financial concerns such as banks and insurance companies.) Advocates of strong antitrust laws argued the American economy to be successful requires free competition and the opportunity for individual Americans to build their own businesses. Indeed, at this time hundreds of small short-line railroads were being bought up and consolidated into giant systems. (Separate laws and policies emerged regarding railroads and financial concerns such as banks and insurance companies.) Advocates of strong antitrust laws argued the American economy to be successful requires free competition and the opportunity for individual Americans to build their own businesses.

30. As Senator John Sherman put it, “If we will not endure a king as a political power we should not endure a king over the production, transportation, and sale of any of the necessaries of life.” Congress passed the Sherman Antitrust Act almost unanimously in 1890, and it remains the core of antitrust policy. The Act makes it illegal to try to restrain trade or to form a monopoly. It gives the Justice Department the mandate to go to federal court for orders to stop illegal behavior or to impose remedies. As Senator John Sherman put it, “If we will not endure a king as a political power we should not endure a king over the production, transportation, and sale of any of the necessaries of life.” Congress passed the Sherman Antitrust Act almost unanimously in 1890, and it remains the core of antitrust policy. The Act makes it illegal to try to restrain trade or to form a monopoly. It gives the Justice Department the mandate to go to federal court for orders to stop illegal behavior or to impose remedies. Public officials during the Progressive Era put passing and enforcing strong antitrust high on their agenda. President Theodore Roosevelt sued 45 companies under the Sherman Act, while William Howard Taft sued 75. In 1902, Roosevelt stopped the formation of the Northern Securities Company, which threatened to monopolize transportation in the Northwest (see Northern Securities Co. v. United States). Public officials during the Progressive Era put passing and enforcing strong antitrust high on their agenda. President Theodore Roosevelt sued 45 companies under the Sherman Act, while William Howard Taft sued 75. In 1902, Roosevelt stopped the formation of the Northern Securities Company, which threatened to monopolize transportation in the Northwest (see Northern Securities Co. v. United States).

31. One of the more well-known trusts was the Standard Oil Company; John D. Rockefeller in the 1870s and 1880s had used economic threats against competitors and secret rebate deals with railroads to build what was called a monopoly in the oil business, though some minor competitors remained in business. In 1911 the Supreme Court agreed that in recent years (1900–1904) Standard had violated the Sherman Act (see Standard Oil Co. of New Jersey v. United States). One of the more well-known trusts was the Standard Oil Company; John D. Rockefeller in the 1870s and 1880s had used economic threats against competitors and secret rebate deals with railroads to build what was called a monopoly in the oil business, though some minor competitors remained in business. In 1911 the Supreme Court agreed that in recent years (1900–1904) Standard had violated the Sherman Act (see Standard Oil Co. of New Jersey v. United States). It broke the monopoly into three dozen separate companies that competed with one another, including Standard Oil of New Jersey (later known as Exxon and now ExxonMobil), Standard Oil of Indiana (Amoco), Standard Oil Company of New York (Mobil, again, later merged with Exxon to form ExxonMobil), of California (Chevron), and so on. In approving the breakup the Supreme Court added the “rule of reason”: not all big companies, and not all monopolies, are evil; and the courts (not the executive branch) are to make that decision. To be harmful, a trust had to somehow damage the economic environment of its competitors.  It broke the monopoly into three dozen separate companies that competed with one another, including Standard Oil of New Jersey (later known as Exxon and now ExxonMobil), Standard Oil of Indiana (Amoco), Standard Oil Company of New York (Mobil, again, later merged with Exxon to form ExxonMobil), of California (Chevron), and so on. In approving the breakup the Supreme Court added the “rule of reason”: not all big companies, and not all monopolies, are evil; and the courts (not the executive branch) are to make that decision. To be harmful, a trust had to somehow damage the economic environment of its competitors. 

32. United States Steel Corporation, which was much larger than Standard Oil, won its antitrust suit in 1920 despite never having delivered the benefits to consumers that Standard Oil did. In fact, it lobbied for tariff protection that reduced competition, and so contending that it was one of the “good trusts” that benefited the economy is somewhat doubtful. Likewise International Harvester survived its court test, while other trusts were broken up in tobacco, meatpacking, and bathtub fixtures. Over the years hundreds of executives of competing companies who met together illegally to fix prices went to federal prison. United States Steel Corporation, which was much larger than Standard Oil, won its antitrust suit in 1920 despite never having delivered the benefits to consumers that Standard Oil did. In fact, it lobbied for tariff protection that reduced competition, and so contending that it was one of the “good trusts” that benefited the economy is somewhat doubtful. Likewise International Harvester survived its court test, while other trusts were broken up in tobacco, meatpacking, and bathtub fixtures. Over the years hundreds of executives of competing companies who met together illegally to fix prices went to federal prison. One problem some perceived with the Sherman Act was that it was not entirely clear what practices were prohibited, leading to businessmen not knowing what they were permitted to do, and government antitrust authorities not sure what business practices they could challenge.

33. In the words of one critic, Isabel Paterson, “As freak legislation, the antitrust laws stand alone. Nobody knows what it is they forbid.” In 1914 Congress passed the Clayton Act, which prohibited specific business actions (such as price discrimination and tying) if they substantially lessened competition. At the same time Congress established the Federal Trade Commission (FTC), whose legal and business experts could force business to agree to “consent decrees,” which provided an alternative mechanism to police antitrust. In the words of one critic, Isabel Paterson, “As freak legislation, the antitrust laws stand alone. Nobody knows what it is they forbid.” In 1914 Congress passed the Clayton Act, which prohibited specific business actions (such as price discrimination and tying) if they substantially lessened competition. At the same time Congress established the Federal Trade Commission (FTC), whose legal and business experts could force business to agree to “consent decrees,” which provided an alternative mechanism to police antitrust.

34. American hostility to big business began to decrease after the Progressive Era. For example, Ford Motor Company dominated auto manufacturing, built millions of cheap cars that put America on wheels, and at the same time lowered prices, raised wages, and promoted manufacturing efficiency. Ford became as much of a popular hero as Rockefeller had been a villain. Welfare capitalism made large companies an attractive place to work; new career paths opened up in middle management; local suppliers discovered that big corporations were big purchasers. American hostility to big business began to decrease after the Progressive Era. For example, Ford Motor Company dominated auto manufacturing, built millions of cheap cars that put America on wheels, and at the same time lowered prices, raised wages, and promoted manufacturing efficiency. Ford became as much of a popular hero as Rockefeller had been a villain. Welfare capitalism made large companies an attractive place to work; new career paths opened up in middle management; local suppliers discovered that big corporations were big purchasers. Talk of trust busting faded away. Under the leadership of Herbert Hoover, the government in the 1920s promoted business cooperation, fostered the creation of self-policing trade associations, and made the FTC an ally of “respectable business.” Talk of trust busting faded away. Under the leadership of Herbert Hoover, the government in the 1920s promoted business cooperation, fostered the creation of self-policing trade associations, and made the FTC an ally of “respectable business.”

35. Theodore Roosevelt did not believe big business was evil and saw monopoly and trusts as inevitable in an industrial society. But, he did believe that big business should work for the good of the people and the country. He judged a “good trust” from a bad one by the criteria of whether or not it was good for the country. The “bad ones” needed to be controlled by the government. Theodore Roosevelt did not believe big business was evil and saw monopoly and trusts as inevitable in an industrial society. But, he did believe that big business should work for the good of the people and the country. He judged a “good trust” from a bad one by the criteria of whether or not it was good for the country. The “bad ones” needed to be controlled by the government. President Roosevelt asserting control over the “Trusts.”

36. “At first, Roosevelt hoped the combination of investigative journalism and public opinion would be enough to uncover and correct business evils. . . . [He believed that] the glare of publicity would eliminate most corporate abuses. . . . Roosevelt used antitrust threats to keep business within bounds. . . . More and more, Roosevelt saw the federal government as an honest and ‘impartial’ broker between powerful elements in society.” “At first, Roosevelt hoped the combination of investigative journalism and public opinion would be enough to uncover and correct business evils. . . . [He believed that] the glare of publicity would eliminate most corporate abuses. . . . Roosevelt used antitrust threats to keep business within bounds. . . . More and more, Roosevelt saw the federal government as an honest and ‘impartial’ broker between powerful elements in society.”

37. Elkins Act (1903) • Prohibited railroad rebates • Expanded powers of Interstate Commerce Commission Hepburn Act (1906) • Authorized the ICC to set reasonable maximum rates • Gave the ICC powers to enforce its edicts

38. TR and the Northern Securities Company Northern Securities: Headed by J.P. Morgan, the Northern Securities Company was a holding company that controlled railroads in the northern quarter of the country. Theodore Roosevelt sued it under the terms of the Sherman Anti-Trust Act and won in the Supreme Court in 1904. Roosevelt subsequently initiated anti-trust suits against the American Tobacco Company, Du Pont Corporation, New Haven Railroad, and Standard Oil.

39. TR’s Overall Record TR’s “policies were not always clear, nor his actions always consistent. . . . Roosevelt, in truth, was not a ‘trust-buster,’ although he was frequently called that.” In fact, his successor, President William Howard Taft proved far more aggressive in bringing law suits against the industrial behemoths of the period

40. TR and Labor • Wage increases • Eight-hour work day • Company recognition of the union Demands of John Mitchell (right), leader of the United Mine Workers

41. May 1902, 140,000 miners stopped working. Theodore Roosevelt made friends with the workers when he refused to use troops to intervene in a massive coal strike in Pennsylvania. TR threatened to nationalize the mines if the mine operators did not give in to some of the workers' demands The owners acquiesced and Theodore Roosevelt personally mediated the strike

42. Results of the Strike: Roosevelt had defied political tradition and reversed the long-standing policy of siding with big business • Miners received a 10% wage increase • Working hours were cut • No recognition for the union Roosevelt termed the outcome of his negotiations in the miners’ strike as the “Square Deal” for both labor and capital. The “Square Deal Dance”

43. Presidential “Firsts” To bring opposing sides in labor disputes to White House To appoint an arbitration commission whose judgments both accepted “Square Deal Policy” caricatured (right). The appellation became affixed generally to TR’s dealings in disputes between labor and management. To threaten to seize a major industry

44. TR’s Opposition to Radical Labor Theodore Roosevelt despised radical unions and socialism. He was determined, however, to eliminate many of the capitalist abuses that drove them.

45. Taft Political PositionsConservative Republicans • Did not enjoy tenure as president • Although TR received celebrity as the “Trust-Buster,” in seven years, he only filed 45 suits in contrast to the 75 that Taft did in only four years • Often wavered or sided with conservatives in Republican Party • Revered the past and distrusted change • Taft, believing himself to be out of the running remained at home and made no campaign speeches in 1912

46. Taft as President Taft prosecuted more trusts than T.R. and continued his progressive policies. But, he was no Teddy Roosevelt

47. So various period cartoons suggest And neither was Woodrow Wilson

48. Clayton Anti-Trust Act of 1914 • Completed Wilson’s initial reform program • Declared that corporations would be fined for practices which were not fair • Outlawed interlocking directorates (see period cartoon to come) • Forbade pricing policies that created monopolies • Made corporate officers personally liable for antitrust violations • Declared that unions were not a restraint to trade • Outlawed use of injunctions in labor disputes unless necessary to protect property

49. In spite of the last two aspects, the courts continued to rule against union pursuits. The Act “reflected confusion over now to discipline a growing economy without putting a brake on output.” Wilson declared that the Clayton Anti-Trust Act completed his “New Freedom Program.”

50. Wilson believed that Progressivism had gone too far because the federal government had become too powerful and large. Wilson leaned toward a states’ rights position. He would not tolerate trusts, good or bad, and was a strong believer in competition and laissez faire.