Wilson Reforms the Nation's Economy
In Grade 8 U.S. History, students learn how President Woodrow Wilson's "New Freedom" program reformed the U.S. economy through the Federal Reserve Act, which created the central banking system; the Underwood Tariff Act, which lowered tariffs; and the Clayton Antitrust Act, which strengthened antitrust laws. Wilson believed smaller businesses and free competition were better than large regulated monopolies. This topic is in California myWorld Interactive Grade 8, Chapter 9.
Key Concepts
After his election, President Woodrow Wilson launched his Progressive program called the "New Freedom." Its main goal was to restore competition in the American economy. Wilson worked with Congress to lower tariffs, which he believed unfairly protected large corporations from foreign competition and kept prices high for consumers.
Wilson also created powerful new agencies to regulate the economy. The Federal Reserve System was established to oversee banking and give the government more control over the money supply. He also created the Federal Trade Commission to investigate and stop unfair business practices, further limiting the power of monopolies.
Common Questions
What was Wilson's New Freedom program?
Wilson's New Freedom was his Progressive reform program that aimed to restore competition by lowering tariffs, creating the Federal Reserve banking system, and strengthening antitrust laws through the Clayton Act.
What was the Federal Reserve Act?
The Federal Reserve Act of 1913 created the Federal Reserve System, America's central bank, which could regulate money supply and interest rates to stabilize the economy and prevent banking panics.
How did Wilson's economic reforms differ from Roosevelt's?
Roosevelt accepted large corporations but wanted to regulate them, while Wilson believed large monopolies were inherently bad and preferred to break them up to restore free market competition for smaller businesses.
What chapter covers Wilson's economic reforms in California myWorld Interactive Grade 8?
Chapter 9: The Progressive Era covers Wilson's economic reforms and the New Freedom program in California myWorld Interactive, Grade 8.