US Social Regulation

Beginning with the tariff, Wilson personally addressed Congress concerning the tariff and the Underwood Tariff Act was established and passed by 1913, which lowered the tariff and graduated an income tax. Following with the bank, Woodrow implemented the Federal Reserve Act, which established a new Federal Reserve and created twelve central banks in twelve banking districts and also, gave them the power to produce currency or “federal reserve notes.” The Federal Trade Commission Act went after the trusts and created a board to investigate trusts and stop unfair trade practices such as, unlawful competition, bribery, false advertising, mislabeling, and adulteration. Finally, in 1914, there was the Clayton Antitrust Act, which made monopolies unlawful and exempted labor unions from being labelled as trusts and legalized striking and peaceful picketing (Document

but it was the most effect in doing. The Sherman Anti-Trust Laws were the first attempt of achieving these goals, but these laws were not always strictly enforced. For this reason President Woodrow Wilson instituted the FTC to ensure that business could be properly regulated. In this instance the efforts of the political machine was able to bring about positive results and limit the control business

This bill, the first of its kind, promoted an involved Federal Government actively reinforcing fair business practices across the country. Unfortunately, the change occurred over a decade prior to the Gilded Age’s onset and did not force the aggressive and proactive measures needed to balance the damage already done. As a result, the Federal Government did not become fully involved in the economic crisis until after the Gilded Age

When Woodrow Wilson was inaugurated in 1913, he stated in his address that, “We shall deal with our economic system as it is and as it may be modified, not as it might be if we had a clean sheet of paper to write upon” (First Inaugural Address, online). He did just that when he passed the Clayton Antitrust Act in October 1914. The Sherman Antitrust Act was passed in 1890, but it was very vague in the way it described monopolies (Clayton Antitrust Act, online). Big business took advantage of the loopholes, which diminished competition (Clayton Antitrust Act, online). Although Roosevelt and Taft successfully busted about 150 trusts, big businesses continued to grow and our entire economic system remained in the hands of a few men (Taft Biography, online; T. Roosevelt – Section 8, online; Clayton Antitrust, online). Wilson requested Congress to modify the Sherman Antitrust Act, and the Clayton Antitrust Act was born (Clayton Antitrust, online). It is “An Act To supplement existing laws against unlawful restraints and monopolies, and for other purposes” (HR 15657, online). The Sherman Act simply declared monopolies illegal, while the Clayton Act declared activities linked with monopolies to be illegal (Clayton Antitrust Act, online). Such activities include mergers and acquisitions that are intended “substantially to lessen competition, or to tend to create a monopoly” (HR 15657, online). The Federal Trade Commission Act, passed about a month before the Clayton Act, banned

Capitalists controlled prices, created ways to increase self profit, and dominated the work field they were in. For example, John D. Rockefeller was in lead of the oil industry through the invention of a trust (Keene, 78). Trusts were ways to combine companies in the same industry under one single head. The government did enact policies like the Sherman Anti- Trust Act, but the vague wording of the document was not enough. The controversial issue of trusts made Americans fear capitalism; these trusts would enable industries to eliminate competition therefore, making prices escalate (Document J). Federal Government should have distributed power evenly to avoid this unfair system that made it almost impossible for middle class citizens to make

Governmental involvement in the economy during the growth of industrialization had a positive impact on society in many ways. Progressives were people that favored government regulations of business practices to guarantee competition and a free enterprise. Big businesses like John D. Rockefeller’s Standard Oil Corporation, controlled the supply and price of oil. Ida Tarbell, a muckraker, exposed the aggressive business practices of Standard Oil Company in her book, “The History of the Standard Oil Company”. Standard Oil did whatever it took to gain control of their competitors and had a monopoly in the oil business with little or no competition. In 1890, the Sherman Anti-Trust Act was enacted to restore competition and free enterprise and to break up monopolies. In 1906, the government passed several laws to make sure that food and drugs were inspected before they were sold. The Pure Food and Drug Act, passed during Theodore Roosevelt’s administration, was an example of the government safeguarding the people in a positive way. The Pure Food and Drug Act ensured that food and drugs would be inspected for purity and to make sure they were not contaminated. Governmental involvement in the economy during this period allowed American to surpass leading competitors like Great Britain and Germany. The government also vastly increased transportation which helped the economy by getting goods from one place

In 1907, an economic/political reform cartoon was printed in the Washington Post. It illustrates Teddy Roosevelt holding a rifle while attacking bad trusts. TR was also known as the “trust-buster”. This cartoon demonstrates the bad trusts are a threat to society, and the government must be more powerful than big businesses. In 1914, the Clayton Antitrust Act was developed, “ That it should be unlawful for any person engaged in commerce, in the course of such commerce , either directly or indirectly to discriminate in price..( Document E)” This document price discrimination is unlawful, and monopolies were illegal. It also infers that conflict of interest was an issue as well, and shouldn’t be allowed because it caused greater

Jefferson didn’t like the idea of the national bank. He thought that giving the federal government too much power would lead into kayos. The British inundated the U.S market with cheap imports to strangle U.S industry. Scared about the situation, the republicans passed the tariff of 1816, the first protective tariff in U.S history.

The Sherman Anti-trust Act in1890 aimed to stop monopolies from their unfair practices: The standard oil company being one of the government’s first attempts to stop. The government’s actions demonstrated their attitude towards monopolies. “ In 1887, congress passed the Interstate Commerce Act, which outlawed railroad rebates and kickbacks and also established the Interstate Commerce Commission to ensure that railroad companies obeyed the new laws” (“Sherman”). Both the Sherman Anti-trust and Interstate Commerce Acts were established to minimize the control monopolies had over the economy.

The population of the United States had almost doubled from 1870 to 1900 because immigrants came to the United States to work in the country's growing factories. As the United States became increasingly urban and industrial, it acquired many of the attributes common to industrial nations: overcrowded cities, poor working conditions, great economic disparity, and the political dominance of big business. One of Roosevelt’s main beliefs was that the government had the right to regulate big business to protect the welfare of society. Although Congress had passed the Sherman Antitrust Act in 1890, former Presidents had only used it sparingly. So when the Department of Justice filed suit in early 1902 against the Northern Securities Company, it sent shockwaves through the business community. The suit alarmed the business community, which had hoped that Roosevelt would follow precedent and maintain a "hands off" approach to the market economy. It was then that Roosevelt would his ‘hands off” approach in the economy. At issue was the claim that the Northern Securities Company; a giant railroad combination created by a syndicate of wealthy industrialists and financiers

This time called for the elimination of monopolies, and by doing so, competition increases and the power of the business elite decreases. With a rising middle class living in fear of the controlling and powerful business elite and political machines, the government needed to intervene. Therefore, in the late 1890’s the government passed the Sherman Antitrust Act which banned industrial monopolies that limited competition. The law sought to increase competition in the sale of items and goods, thereby helping the middle and lower classes earn money without fear of dominance of the wealthy elite and trusts. However, the act had little effect because the wording was so vague. Consequently, progressives worked for a stronger law to prevent business abuses. Their answer came in 1914 when Woodrow Wilson and Congress set up the Federal Trade Commission whose goal was to stop illegal business practices. President Woodrow Wilson provided the US with most of its Progressive Era

In the beginning of the United States, government pioneers generally abstained from managing business. As the twentieth century drew closer, in any case, the union of U.S. industry into progressively intense enterprises prodded government intercession to ensure little organizations and purchasers. In 1890, Congress authorized the Sherman Antitrust Act, a law intended to reestablish rivalry and free endeavor by separating imposing business models. In 1906, it passed laws to guarantee that sustenance and medications were effectively named and that meat was investigated before being sold. In 1913, the administration set up another government managing an account framework, the Federal Reserve, to direct the country 's cash supply and to place a few controls on saving money exercises.

It is very vital to implement rules, regulations and guidelines that are necessary so that individuals and organizations remain in compliance with the law. These set of polices help protect an organization from possible legal action or being penalized. It also, allows everyone to understand what is expected of them within any nature of business. Without guidelines and policies set forth by the government more than likely it would result in a breakdown in social structure, and it would result in unjust circumstances. Over the years the United States government has set many business regulations in place to safeguard consumer’s rights, protect society and hold corporations responsible for the power they have in our

Free markets have often been idealized in the US, and have become a dominant tool for trade and distribution of goods and services. There have been multiple waves of government regulation and deregulation of the market in US history. Each of these trends have been grappling with the central question of how sufficient markets are at satisfying our goals. In theory, free markets are fair and efficient at distributing goods and services. In reality, however, government must intervene in the marketplace for two overarching reasons. First, because in practice free markets left to themselves are not always fair and efficient. And second, because fairness and efficiency are not our only goals and

In the early 1800's, the process of industrialization grew rapidly. As a result, many feared that government involvement would interrupt the free market economy. A popular philosophy among Americans, known as laissez-faire, became the leading concept for private industry and government. Laissez-faire is an economic system in which transactions between private parties are free from government interference such as regulations, privileges, tariffs, and subsidies. This promoted competition within the private sector based on quality and quantity of products. Adam Smith, an English writer and economist, is known for developing laissez-faire in his famous book The Wealth of Nations. In his writings, Smith argued that competition would promote the best production, not government regulation. Although the lack of government regulation was admirable, business abuse erupted and multiple monopolies formed. As a result, the government stepped in and began to monitor and regulate businesses. During the mid 1800's, many presidents began to gain more individual power. Andrew Jackson, one of the most power hungry presidents in history, took on more power than any other president up to that point. Consequently, he was named “King Andrew Jackson”. Many felt he was an autocratic ruler because he vetoed 12 major bills, forced tariffs on the south, closed the National Bank, threatened the south with military action, issued a