Economic Issues
& the Roots of
Progressivism
1890-1920
The Gilded Age
 Laissez-Faire capitalism
 “Robber Barons”

Carnegie (Steel)

Rockefeller (Oil)

Morgan (Banking)

Vanderbilt (Railroads)
 The haves and the have-nots
Economic Ups & Downs
 Depression of 1893
 High unemployment
 Panic of 1907
 Bank failures; tight credit
 Scrip
 World War I
 Mobilization
 Demobilzation
Labor Unrest
 Homestead Strike (1892)
 Carnegie Steel
 Coxey’s Army (1894)
 Unemployed march on Washington, D.C.
 Pullman Strike (1894)
 Railway cars; Eugene Debs
 Coal Strike (1902)
 Roosevelt’s “Square Deal”
 1905-present
 Socialist
 “The Wobblies”
 Industrial, as opposed to craft
The Tariff
 Protectionism v. Free Trade
 McKinley Tariff Act (1890)
 Protectionist
 Contributed to Depression of 1893
 Payne-Aldrich Tariff Act (1909)
 Showed difficulty in lowering tariffs; led to split among
Republicans
 Underwood-Simmons Tariff Act (1913)
 Reduced tariff rates
 Wilson’s “New Freedom”
Income Taxes
 Most of history, US government relies on tariff
for income
 Made Constitutional by 16th Amendment (1913)
 Progressive (graduated) tax
 First introduced in Underwood-Simmons Tariff
Act
 1% if over $4,000
 7% if over $500,000
The Federal Reserve System
 Banking sector in need of greater
regulation
 Federal Reserve Act of 1913
 12 Regions
 Owned by commercial banks through
stock
 Discount rate/money supply
The Emerging Middle Class
 Managerial class
 Between the haves and the have-nots
 Appalled at behavior of rich
 Frightened by behavior of poor
 Something needs to be done!
What is Progressivism?
 Desire for change
 Reform is possible
-
Rejection of Social Darwinism (although still
subject to similar biases)
 Government must intervene
Roots of Progressivism
 Response to Industrialization
 Created some rich, but left many poor
 Child labor
 Women in workforce
 Fouling of environment
 Dangers of cities
 Plight of farmers
Roots of Progressivism
 Populism
 Farmers Alliances
 Labor Unions
 William Jennings Bryan
 Moral call for fair treatment
Roots of Progressivism
 Rise of Scientific Study
 Belief that social problems could be solved by
applying scientific methods
 Need to collect data
 Experiments
Roots of Progressivism
 Religious revivalism
 The “evils” of modern society
 Alcohol
 Gambling
 Sex
 Decline of family cohesion
 Political radicalism
Who Were Progressives?
 Middle Class
 Northern
 Educated
 They knew better
 Solving problems for poor rather than with
poor
 Influential
Methods
 Scientific Study
 Exposé
 Muckraking
 Lectures
 Publishing
 Lobbying
 Elections
Industry
 Antitrust Laws
 Minimum Wage
 Safety
 Work Week
 Women
 Child Labor
 Consumer Protection
Photo by Lewis Hine
Urban Life
 Poverty
 Public Health
 Immigration
 Education
 Building Codes
 Crime
 Corruption
Photo by Jacob Riis
Women’s Issues
 Suffrage
 The vote
 Morality
 Safety
 Birth Control
Photo Library of Congress
Conservation
 Pollution
 Fitness
 Outdoors
 Public Parks
 National Parks
Photo Library of Congress
Other Areas of Interest
 Sin
 Alcohol
 Prostitution
 Racial Issues
 Lynchings
 Taxation