• Today, I will learn . . .– To evaluate the changing economic policy

of the U.S. government during the Progressive Era.

• I will learn it by . . .– Listening to lecture & using Cornell Note

Strategies.

• I have learned it when I can . . .– Create a graphic organizer that represents

domestic and foreign policy issues related to economic growth from 1870s to 1920s.

Three Questions

• How did the relationship between the federal government and private business change from the 1870s to 1920?

Essential Question

Progressive Era Economic Policy Issues

©2012, TESCCC

CHANGING RELATIONSHIP BETWEEN THE FEDERAL GOVERNMENT AND PRIVATE BUSINESS

©2012, TESCCC

Laissez-faire government

Cost

• Limiting government control reduces the possibility of regulation and corruption manifesting

Benefit

• Allows the market to govern itself

• Based on supply and demand

©2012, TESCCC

©2012, TESCCC

Anti-Trust Acts

Cost

• Law had been in place since the 1890s but was not used to regulate corporations

• Laissez-faire principles believed in allowing the business to work out its own destiny

Benefit

• Giant corporations were no longer allowed to monopolize the market to set prices or control industries

©2012, TESCCC

Interstate Commerce Commission

Cost

• Regulatory commissions were created to determine if trusts were “bad” or “good” trusts

• Commissions were not very effective

Benefit

• Even though the commissions were somewhat ineffective, the idea that public good was prioritized over private greed became more apparent

©2012, TESCCC

Pure Food and Drug Act

Cost

• Prevented the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic , etc.

Benefit

• Protected the public consumption of these goods

©2012, TESCCC

FOREIGN POLICIES IMPACT ECONOMIC ISSUES

©2012, TESCCC

Chinese Exclusion Act, 1882

• First major law that restricted immigration in the U.S.

• Extended in 1902, 1904 – and until the 1940s

• Enacted in reaction to West coast fears that Chinese workers were undercutting American labor and wages

©2012, TESCCC

Open Door Policy

• Sec. of State John Hay’s economic policy in China

• Gave imperial powers equal trading rights in the country in 1899-1900

• Policy spurred the Boxer Rebellion – Chinese nationalists revolted against foreign invasion

• U.S. had to suppress the rebellion

©2012, TESCCC

Boxer Rebellion Editorial Cartoon

©2012, TESCCC

New Open Door Policy

Cue the laughs now!!!!

Very Bad Joke!!!

Dollar Diplomacy

• Taft encouraged U.S. investment in Latin American and Far East

• Promised military protection abroad• As priorities shifted in global relations, U.S

foreign policy makers returned to a goal of isolationism prior to World War I

©2012, TESCCC

Immigration Quotas

• 1880s – growing concern about immigration

• As a result of World War I, National Origins Quota Act, 1921 was passed – set the quota of legal immigrants to 3% of their current ethnic makeup in the U.S. (law changed 3 years later)

©2012, TESCCC

MONETARY POLICY

©2012, TESCCC

Federal Reserve Act, 1913

• Created the central banking system• Granted legal authority to issue legal

tender• Charged with regulating U.S. monetary

policy• Eventually, in 1971, America moves from

the gold standard to fiat money

©2012, TESCCC

Between 1870 and 1920

• Progressive reforms moved away from the laissez-faire government to offer regulations in business and industries to protect the consumer.

• Anti-trust acts, regulatory commissions, and multiple regulatory pieces of legislation were enacted to protect the consumer – Federal Reserve, Sherman Anti-Trust Act, etc.

• American foreign policy emerged on the global stage and retreated to a policy of isolationism©2012, TESCCC

This is an overall Summary of today’s notes!!!