History of Economics Bush Administration Through the Trump Administration Essay Class is history of economics, the prompt is based on the bush administrati

History of Economics Bush Administration Through the Trump Administration Essay Class is history of economics, the prompt is based on the bush administration through the trump administration. I have attached the teachers notes which are to be used in the response. No need to cite these notes because they are direct from the teacher. AND no research! Please be specific to the notes the teacher is a stickler Beginning of Imperialism and The Progressive Era of Economic and political
policy:
January, 1895: Revolt in Cuba and the Philippines
1) Cuba was a colony of Spain at the time and one few colonies that Spain still
had left. Given the economic Doctrine of Mercantilism, Spain wanted to do
anything it could to hold onto the colony.
2) 1895—Revolt in the Philippines simultaneously; Weyler sent into the
Philippines and then into Spain in 1896—Nickname “Butcher”—he went
after the rebels’ women and children to try and stabilize the situation. The
revolt eventually calmed down.
Election of 1896:
A) Issue was mainly the economy and the money supply following the
events of the Panic of 1893 and the shortage of money that had affected
the farmers after the Panic of 1873
B) The farmers had gone and created their own party, the Populists, in 1892
over the issue of money supply and wanting to use more silver to back
money because it was more in supply.
C) The Democrats nominate William Jennings Bryan.—former
Congressman from Nebraska
1) His “Cross of Gold” Speech—at the Democratic convention—
attacking Cleveland and advocating the “Bimetallism” which had
been the Populist position on usage of silver from their platform of
1892.
2) William McKinley—Ohio Republican (former member of Congress
and Governor of Ohio)—he attracted urban voters in particular.
3) McKinley wins election….is sworn in March, 1897
a. The tariff and other domestic issues are dwarfed by the situation in
Cuba.
4) McKinley did sign into law in 1897 the Dingley Tariff—this was
raising the tariff upwards—at this time, Republican business interests
favored a higher protective tariff. Democrats—led by the farmers in
particular were very much opposed to a high tariff. This was the
highest economic tariff in American history to that time.
b. By 1897, the revolt in Cuba had cost the U.S. 17 million dollars for
those Americans that were doing business with Cuba.
c. 1897, Butcher Weyler is recalled to Spain for use of his tactics.
d. January, 1898: The U.S.S. Maine was sent to Cuba for the
purpose of surveillance and protection. McKinley DID NOT want war. This was
a response to the tactics having been used by Butcher Weyler.
e. De Lome Letter: Spanish Ambassador writes letter which is
intercepted by Cuban revolutionaries and then published by American newspapers
(William Randolph Hearst). It was insulting about McKinley and America’s
economic and diplomatic involvement in Cuba.
f. February 15, 1898: The U.S.S. Maine was sunk—Spain was
blamed for the sinking.
g. April 1898: Official declaration of war on Spain by McKinley..
h. Public pressure forced this war and McKinley did not want to go
i.
San Juan Hill—taken by the “Rough Riders” a group of
cavalry officers led by Theodore Roosevelt, who was Assistant
Secretary of the Navy at the time. This war will make him a
national hero and a political force when he returns.
j. Treaty of Paris, December 1898—Eventual territory that U.S. got:
Hawaii, Cuba, Puerto Rico, Guam, American Samoa, and the
Philippines. Increased the size of the United States and now the U.S.
was able to become an economic power in Latin America/Caribbean.
1. This war was cheap comparatively to other wars America will
fight; $283 million dollars; and short. Only 3,000 Americans killed
but the majority of these died from Yellow Fever (Malaria).
2. The United States’ relationship with the rest of the world changed
and this truly marked the beginning of “Economic Imperialism”
period of the country; capitalizing on getting into Latin America
(going all the way back to the elements of the Monroe Doctrine of
1823; keep Europe out of colonizing Latin America so America
could eventually economically “jump” into the area and benefit
from it. (Doctrine of Mercantilism again being applied as to what
motives colonization.
Election of 1900:
A) William Jennings Bryan will run again for the Democrats;
Again the issues will be economic—he will campaign on the
lowering of tariffs and the usage of silver and bimetallism
(previously used in his earlier campaign and a Populist element
going back to 1892.)
1. McKinley will be nominated again by the Republicans as
the incumbent President.
2. Teddy Roosevelt had gotten elected Governor of New York
as an “economic Progressive,” and because of his increased
hero status from Spanish-American War.
a. Roosevelt was an “Economic Progressive” as Governor
of New York—Progressivism meant help the “common
man” ; regulate the economy; led to legislation in the
following areas:
1. Strongest Civil Service law in the nation.
2. Laws to regulate working conditions in “sweat
shops”—factories where workers worked long hard
hours for little money with no protection.
3. These policies got him national attention but some in
the Republican party wanted him out of power in
New York to stop this new brand of “economic
progressivism,”
4. Roosevelt would be nominated to be Vice-President
by a wing of the party to get him out of power at New
York; the thought was that the job of Vice-President
was really a “dead-end” job with no power that
Roosevelt did not really want.
5. There was a more conservative wing of the
Republican party that was nervous because as VicePresident if something happened to McKinley, that
Roosevelt would become President and implement
“Progressive” policies that would change American
economic and political policy that would hurt big
business. Mark Hanna –Ohio conservative
industrialist said of Roosevelt’s becoming VicePresident, “That damn cowboy is a heartbeat away
from the Presidency.
6. McKinley assassination: McKinley shot on
September 5, 1901 six months into his new term. He
at a fair in Buffalo, New York. He died eight days
later from gangrene.
The Rise of Economic Progressivism under Roosevelt: (Roosevelt as a
Progressive believed in significant reduction of the economy and his Presidency
will demonstrate this).
1. Northern Securities Case: Northern Securities was a major
holding company; (trust; monopoly) headed by J.P.Morgan (a
major figure of the “Gilded Age” era. Roosevelt hated J.P.
Morgan and also wanted to enforce the Sherman Anti-Trust Act
of 1890.
a. Roosevelt will have the Attorney General take J.P. Morgan
and Northern Securities to the Supreme Court in 1902. The
Supreme Court will rule that Northern Securities as a Trust
and monopoly was in violation of the Sherman Anti-Trust
Act and had to be broken up. His enforcement of the
Sherman Act was a key element of “Progressivism” in that
Roosevelt believed that monopolies were a detriment to
small businesses that could not compete and that they
economically restricted competition and hurt the common
man.
b. Anthracite Coal Strike: September 1902: May, 1902:
Strike called by the United Mineworkers’ Union President
John Mitchell; 147,000 miners went out on strike.
1. Economic significance of the strike: The mines were
important to the country as a source of power and heat.
Given that the strike was heading into the fall, September
1902, there was no progress. The two sides were
represented by John Mitchell (UMW president) and the
Mine owners representative George Baer)
a. The two sides were called to the White House and
refused arbitration. Roosevelt threatened to first have
Federal soldiers man the mines. The miners knew
they would lose wages this way. The mine owners
knew this would cost them money. Finally they
agreed to accept the results of an arbitration committee
that Roosevelt appointed and influenced.
1. Significance of this: No president really had any
power to get involved and intercede in a major
labor dispute. Roosevelt didn’t care that there was
objection to his getting involved in a situation like
this; his concern was the economic interruption and
consequences for the country.
1903: Under Roosevelt, foreign policy will also have economic implications:
1. There was a push which Roosevelt agreed with and supported to build a
canal to make it easier to ship commercially and increase American
economic imperialism in the region. It would connect the Pacific and the
Atlantic oceans and thus cause a more direct route for shipping .
2. Hay-Heran Treaty: 1903 negotiated with Colombia it would give the U.S. a
100 year lease on a six mile wide strip of land (Isthmus) . The payment was
$10,000,000 initially and then a $250,000 payment annually for a period of
10 years. The U.S. Senate ratified it in March of 1903 but the Colombian
Senate rejected it.
a. There was a revolt going on in Panama against Colombia that the U.S.
gave support to and the U.S.S. Nashville gave support to the radicals and
this helped the Colombian government lose control of Panama and the
United States took possession of the land and Colombia got nothing.
b. The canal zone will take 10 years to build (1904-14) and cost 375
million dollars with 56,000 employed. It did make commerce for the
U.S. in the region easier and also gave us a further economic foothold in
the area as well.
Election of 1904:
Roosevelt makes huge mistake—On the night he wins reelection, he will
pledge that he will NOT seek reelection in 1908—which he would have
had the right to do legally.
1) Roosevelt was largely responsible for the creation of the U.S. Park
and land preservation system as we know it. He sided with the those
who were pro-environment. Being pro-environment was a
progressive ideal.
Muckraker period—Term first used by Teddy Roosevelt—It described writers who
were out to expose corruption and economic injustice and wrote about it to focus
attention on it to improve life for the common man:
Examples:
1) Ida Tarbell—Muckraker who wrote “The History of Standard Oil” in 1904
to expose Rockefeller’s practices and the way he treated his workers.
2) Upton Sinclair—Muckraker who wrote “The Jungle.” (1904) This was a
book about the horrible conditions and lack of sanitation in meat processing
plants in the time; this book focused particularly on the meat processing
industry in Chicago; it showed how plants like this were full of rats, bugs,
feces, and other sanitation problems.
3) Lincoln Steffens—a Muckraker who wrote a book entitled “Shame of the
Cities” (1904)—This was a collection of essays dealing with cities of
America and the political corruption, bribes , and graft that went on at the
time and he wanted to expose them.
Domestic Progressive legislation under Roosevelt that he pushed and signed into
law:
1) Pure Food and Drug Act: (1906) This law was written to ban
mislabeling of food and pharmaceutical products that were both foreign
and domestically produced and refer for prosecution. Ingredients had to
be what were identified on the label for both food products and
pharmaceutical makers. Violators would be prosecuted under Federal
law.
2) Meat Inspection Act (1906) This statute was designed to make sure that
conditions in meat processing plants were sanitary and that meat was
appropriately identified. It later led to poultry inspection as well and all
of this later supervised by the United States Department of Agriculture.
3) Hepburn Act (1906)—Prior to this, those larger companies that shipped
in great quantities did so and received a rebate—meaning that their price
was lowered or money given back based on the amount that they
shipped. This practice made it very difficult for smaller businesses to
compete as they could not and not ship as of great a quantity. The
Hepburn Act will make the rebate practice illegal.
Panic of 1907:
This was a panic caused first by an attempt for speculators to corner the market on
stock of the United Copper Company. When this attempt failed, banks that had
lent money to those who attempted to get the stock suffered from “runs” on them
(much like the Great Crash of 1929) and a number of banks went under as a result
of not being able to give depositors the money they were owed.—banks became
insolvent.
1) This helped lead to the creation of the Federal Reserve as a major piece of
Progressive legislation under Woodrow Wilson (to be addressed later).
Roosevelt had already committed to not running for reelection in 1908.
A) He had a major role in helping the Republican party choose his successor.
William Howard Taft will be the Republican nominee and the 2nd
progressive president.
B) Taft’s background—Lawyer by training; he had been a Federal Judge;
Governor of the Philippines (when it was first a colony)—he always wanted
to be on the Supreme Court.
C) Roosevelt throws his weight behind Taft—Taft will win election.
Taft was very much a progressive as he broke up more trusts (monopolies)
than Roosevelt had done. (Broke up twice as many in 4 years than
Roosevelt did in 7.5 years of almost two terms)
Problems of perception for Taft: (as to whether he was truly an economic
Progressive or not)
1) Payne-Aldrich Tariff (1909)—Taft had called for a bill to lower the tariff
and that is how the bill started out. With changes, it actually raised tariffs
on some items slightly. The house version of the bill had called for
major reductions but the House version was substituted for a Senate
version written by Senator Nelson Aldrich. This was the first change in
the tariff since the Dingley Act of 1897. Taft signed it into law and it
made him look “anti-progressive” as it did not do what it set out to do
economically.
2) Ballinger-Pinchot Affair—November 1909: Ballinger was the Secretary
of the Interior (cabinet position that controlled and protected all federal
lands; national parks, wild life preserves etc…) Ballinger was accused by
Gifford Pinchot (U.S. Forest Service Director) of some shady land
dealings in western Alaska. Pinchot went public with the allegations
before going to Taft and Taft fired him. They both probably should have
been fired. By firing Pinchot, Taft looked anti-progressive because being
pro-environment is a Progressive idea and principle
3) Taft’s alliance with Joe Cannon: Joe Cannon was the Speaker of the
House and known to be a “machine type” corrupt old school politician.
Taft had to form a political alliance with him because if he didn’t then
Taft’s legislative agenda had no chance to pass in the House. This made
him appear anti-progressive because of his alliance with an old-time,
corrupt, conservative non-progressive.
4) Dollar Diplomacy: Taft and his Secretary of State Philander Knox
believed that all diplomacy should be driven by economics; meaning that
diplomacy should be used to guide American foreign policy; Taft
believed whoever controlled railroads would control country.
Russia/Japan controlled the railroads in China. Taft wanted to control the
Railroads; wanted to buy them from Russia/Japan and return them to
China. Russia/Japan said no. Economic and political embarrassment and
defeat for the United States.
5) Taft had encouraged foreign investment in Mexico— 1 billion dollars
bought up of land by Americans in Mexico; Mexican poor resented this
and it also was an economic failure—did not have the desired long-term
economic effects Taft wanted.
Election of 1912:
1) Roosevelt opposed the Republican incumbent, Taft, whom he had helped to
get the presidency. Roosevelt felt that with such mistakes as the PayneAldrich Tariff and failure of dollar diplomacy and that he in his mind was
more of a true economic Progressive than Taft had been (even though in
reality Taft had broken up twice as many monopolies and trusts in four years
as Roosevelt did in 7.5 years.)
2) The Republican party has no choice but to nominate Taft again. If they did
not they admitting he did a lousy job.
a. Roosevelt’s response was to form his own party, the “Bull-Moose” party
and run as an independent.
3. The Democratic nominee was Woodrow Wilson (Governor of NJ at the
time) . He was the third and final progressive president. The vote will split.
Wilson will win , Roosevelt comes in second, and Taft, the incumbent
comes in last.
Wilson: Progressive Domestic policy of his first term:
1913: Underwood-Simmons Tariff: Signed into law by Wilson and it was the most
significant decrease in the tariff since 1857. Also tucked into the legislation was
the first “graduated” federal income tax. This would become permanent by a later
constitutional amendment.
3) Federal Reserve System: As a response to the “crash” of 1907, to prevent
runs on banks (too many people trying to get their money out of banks at one
time) Wilson will sign into law the Federal Reserve system statute.
a. The country was divided into 12 banking districts. Each “district” had a
district Federal Reserve bank ; all in large eco important cities: (EX:
New York, Philadelphia, Boston, Chicago, San Franciso)
b. All commercial banks had to belong to the Federal Reserve. There was
a reserve requirement. This meant that every commercial bank had to
keep a certain % of their money aside (percentage was uniform) and they
could not loan out that money. As an example, say the % was 20% they
had to set aside as their reserve requirement; the Federal Reserve would
match that 20% so this gave the bank 40% in reserve to prevent a run on
banks and help banks stay solvent. This will work till the crash of 1929.
4. Federal Trade Commission: (1914) Established in 1914 when signed into
law. It outlawed unfair practices that affect commerce. As an example,
misleading advertising practices and regulation of such would fall under the
domain of the FTC.
5. Clayton Act: (1914) To understand this one must first understand
corporate structure:
a. Corporate power goes like this : At the top are the stockholders or
shareholders. They appoint the Board of Directors. The Board of
Directors in turn appoints the C.E.O. (today you can have a Chief
Executive Officer or a CFO (Chief Financial Officer), or a C.O.O. (Chief
Operating Officer). The C.E.O. then appoints the President who runs the
company day to day and the President appoints the management below
him (subordinates).
b. If one company was a subsidiary of another—owned by the other and
they did business together, this statute would OUTLAW the practice of
what was called an Interlocking Directorate—a member of the Board of
Directors of one company sitting on the Board of Directors of the
subsidiary because they could be stockholders in both and that creates a
conflict of interest.
A. The economic excesses of the 1920’s, according to many economic
historians, were really a reaction to the regulatory economic climate of the
Progressive era. Write an essay in which you first address the period of
economic “Progressive regulation” under the three Progressive Presidents
between 1901-1920. Analyze the central and pivotal economic situations
that were indicative of this new economic philosophy and how it would and
did change America during the period. Be sure to consider specific laws,
statutes, and Executive branch use of power that demonstrated this new
economic way of thinking during the period. As a contrast and reaction,
trace the economic and cultural excesses of the 1920’s that helped contribute
to the economic “crash” of 1929. Why was Hoover not able to deal with it
appropriately? Describe the specific agencies and programs that were part
of Roosevelt’s “New Deal” that were created to help America recover from
this economic calamity. Could the New Deal be used today? Defend or
refute that element with evidence to support your position.
ELEC 1928: Coolidge decides not to run for reelection. Part of the reason
historians always debated: Did he foresee the crash? The economy was starting
to “overheat” and debt was rising. As well, his young son had died while Coolidge
was in office and this brought about a severe element of depression. So,
historians when analyzing his reasons for not running usually attribute them to
the above elements. Coolidge, whose economic philosoph…
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