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Regulation of private corporations

6.2 The Progressive Movement

The Progressive Era in the United States

 A Level/AS Level/O Level

History Notes

Your Burning Questions Answered!

Assess the effectiveness of the Sherman Antitrust Act of 1890 in regulating private corporations during the Progressive Era.

Explain the motivations behind the Progressive Movement and its impact on the regulation of private corporations.

Discuss the strengths and weaknesses of the Interstate Commerce Commission (ICC) as a regulatory agency during the Progressive Era.

To what extent did government regulation during the Progressive Era help or hinder the development of American capitalism?

Compare and contrast the regulatory approaches of Theodore Roosevelt and Woodrow Wilson towards private corporations.

Regulation of private corporations

1. Regulation of Private Corporations: The Rise of Big Business and the Need for Control

1.1 The Rise of Big Business

⭐The Industrial Revolution: In the late 19th century, the United States experienced a rapid period of industrialization, driven by technological advancements like the steam engine, electricity, and the telegraph.
⭐Monopolies and Trusts: Powerful corporations, often with monopolies or near-monopolies in their industries, emerged. These "trusts" controlled entire sectors, squeezing out competition and driving up prices. Examples include Standard Oil (oil) and Carnegie Steel (steel).
⭐Concerns over Power: These massive corporations amassed immense wealth and power, leading to concerns about their influence over government, the economy, and everyday life. People worried about unfair labor practices, environmental damage, and the concentration of wealth in the hands of a few.

1.2 The Movement for Regulation

⭐Public Opinion Shifts: Public outcry over the abuses of big business fueled a growing movement for government intervention and regulation.
⭐The Sherman Antitrust Act (1890): This landmark legislation prohibited monopolies and other forms of unfair competition, aiming to create a more level playing field for businesses.
⭐The Interstate Commerce Act (1887): This law focused on regulating the railroad industry, aiming to prevent discrimination against smaller businesses and promote fair pricing.
⭐Early Challenges: These early regulatory efforts faced challenges, with big businesses often finding loopholes and resisting enforcement.

1.3 The Progressive Era and Beyond

⭐Continued Reform: The Progressive Era (1890-1920) saw a surge of reforms aimed at controlling big business and protecting consumers.
⭐The Clayton Antitrust Act (1914): This act strengthened the Sherman Act by clarifying what constituted illegal business practices and creating the Federal Trade Commission (FTC) to enforce antitrust laws.
⭐The Food and Drug Administration (FDA): Established in 1906, the FDA began regulating the safety and labeling of food and drugs.
⭐Ongoing Debate: The balance between promoting economic growth and ensuring fair competition continues to be a complex and ongoing debate.

2. The Progressive Era in the United States: A Time of Reform and Social Change

2.1 The Context of the Progressive Era

⭐The Industrial Revolution's Impact: The end of the 19th century saw rapid industrialization, leading to problems like poverty, inequality, and unsafe working conditions.
⭐Urbanization and Immigration: Cities grew rapidly due to industrialization and immigration, leading to overcrowding, disease, and social unrest.
⭐Rise of Muckrakers: Journalists like Upton Sinclair and Ida Tarbell exposed corruption and societal problems, sparking public outrage and a desire for change.

2.2 Key Goals of the Progressive Era

⭐Social Justice: Progressives sought to address social issues like poverty, child labor, and unsafe working conditions.
⭐Political Reform: They aimed to make government more responsive to the needs of the people and reduce the influence of special interests.
⭐Economic Regulation: They sought to control the power of big business, protect consumers, and ensure fairer competition.

2.3 Major Achievements of the Progressive Era

⭐Child Labor Laws: States enacted laws to limit or prohibit child labor.
⭐Minimum Wage Laws: Some states established minimum wage laws to ensure fair compensation for workers.
⭐Workers' Compensation: States began implementing workers' compensation programs to protect workers injured on the job.
⭐Direct Democracy: States adopted reforms like the initiative, referendum, and recall to give citizens more direct control over their government.
⭐Regulation of Big Business: Key laws were enacted to curb the power of monopolies and ensure fair competition.
⭐Social Welfare Programs: State and local governments began providing services like public parks, libraries, and social programs for the poor.

2.4 The Legacy of the Progressive Era

⭐Impact on American Society: The Progressive Era significantly shaped American society, leading to improved working conditions, social welfare programs, and a more responsive government.
⭐Continued Challenges: Despite these achievements, issues like inequality, poverty, and environmental protection remained challenges that continue to be addressed today.

6.2 The Progressive Movement

⭐Broadly Based Reform Movement: The Progressive Movement was a diverse and multifaceted social and political movement that aimed to address the problems created by industrialization and urbanization.
⭐Social Gospel: This movement emphasized the importance of applying Christian principles to social problems, leading to efforts to improve living conditions for the poor and working class.
⭐Muckraking Journalism: Investigative journalists exposed corruption in government and business, shocking public opinion and fueling calls for reform.
⭐Women's Suffrage Movement: Women played a key role in the Progressive Movement, fighting for the right to vote and other social reforms.
⭐Focus on Efficiency and Expertise: Progressives believed that experts and scientific methods could be used to solve social problems, leading to the creation of new government agencies and professional organizations.
⭐Impact on American Society: The Progressive Movement had a lasting impact on American society, shaping government policies and social values. It led to a more responsive and active government, a greater focus on social welfare, and the rise of a professional class of experts.

Remember, these notes are just a starting point. There is a lot more to learn about the regulation of private corporations and the Progressive Era. Use these notes as a framework for further research and discussion!

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