Chapter Seven: the Progressive Era
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The Historic Failure of the Chicago School of Antitrust Mark Glick
Antitrust and Economic History: The Historic Failure of the Chicago School of Antitrust Mark Glick1 Working Paper No. 95 May 2019 ABSTRACT This paper presents an historical analysis of the antitrust laws. Its central contention is that the history of antitrust can only be understood in light of U.S. economic history and the succession of dominant economic policy regimes that punctuated that history. The antitrust laws and a subset of other related policies have historically focused on the negative consequences resulting from the rise, expansion, and dominance of big business. Antitrust specifically uses competition as its tool to address these problems. The paper traces the evolution of the emergence, growth and expansion of big business over six economic eras: the Gilded Age, the Progressive Era, the New Deal, the post-World War II Era, the 1970s, and the era of neoliberalism. It considers three policy regimes: laissez-faire during the Gilded Age and the Progressive Era, the New Deal, policy regime from the Depression through the early 1970s, and the neoliberal policy regime that dominates today and includes the Chicago School of antitrust. The principal conclusion of the paper is that the activist antitrust policies associated with the New Deal that existed from the late 1 Professor, Department of Economics, University of Utah. Email: [email protected]. I would like to thank members of the University of Utah Competition Group, Catherine Ruetschlin, Marshall Steinbaum, and Ted Tatos for their help and input. I also benefited from suggestions and guidance from Gérard Duménil’s 2019 seminar on economic history at the University of Utah. -
Mere Libertarianism: Blending Hayek and Rothbard
Mere Libertarianism: Blending Hayek and Rothbard Daniel B. Klein Santa Clara University The continued progress of a social movement may depend on the movement’s being recognized as a movement. Being able to provide a clear, versatile, and durable definition of the movement or philosophy, quite apart from its justifications, may help to get it space and sympathy in public discourse. 1 Some of the most basic furniture of modern libertarianism comes from the great figures Friedrich Hayek and Murray Rothbard. Like their mentor Ludwig von Mises, Hayek and Rothbard favored sweeping reductions in the size and intrusiveness of government; both favored legal rules based principally on private property, consent, and contract. In view of the huge range of opinions about desirable reform, Hayek and Rothbard must be regarded as ideological siblings. Yet Hayek and Rothbard each developed his own ideas about liberty and his own vision for a libertarian movement. In as much as there are incompatibilities between Hayek and Rothbard, those seeking resolution must choose between them, search for a viable blending, or look to other alternatives. A blending appears to be both viable and desirable. In fact, libertarian thought and policy analysis in the United States appears to be inclined toward a blending of Hayek and Rothbard. At the center of any libertarianism are ideas about liberty. Differences between libertarianisms usually come down to differences between definitions of liberty or between claims made for liberty. Here, in exploring these matters, I work closely with the writings of Hayek and Rothbard. I realize that many excellent libertarian philosophers have weighed in on these matters and already said many of the things I say here. -
The Square Deal
Teddy Roosevelt - The Trust Buster Teddy Roosevelt was one American who believed a revolution was coming. He believed Wall Street financiers and powerful trust titans to be acting foolishly. He believed that large trusts and monopolies were harmful to the economy and especially to the consumer. While they were eating off fancy china on mahogany tables in marble dining rooms, the masses were roughing it. There seemed to be no limit to greed. If docking wages would increase profits, it was done. If higher railroad rates put more gold in their coffers, it was done. How much was enough, Roosevelt wondered? The President's weapon was the Sherman Antitrust Act, passed by Congress in 1890. This law declared illegal all combinations "in restraint of trade." For the first twelve years of its existence, the Sherman Act was a paper tiger. United States courts routinely sided with business when any enforcement of the Act was attempted. 1. What belief guided President Theodore Roosevelt’s efforts as a trustbuster? 2. What is a monopoly? Why are they harmful to the economy and to the consumer? 3. What piece of legislation did Roosevelt use to break up monopolies? The Square Deal The Square Deal was Roosevelt's domestic program formed on three basic ideas: conservation of natural resources, control of corporations, and consumer protection. In general, the Square Deal attacked plutocracy and bad trusts while simultaneously protecting businesses from the most extreme demands of organized labor. In contrast to his predecessor William McKinley, Roosevelt believed that such government action was necessary to mitigate social evil, and as president denounced “the representatives of predatory wealth” as guilty of “all forms of iniquity from the oppression of wage workers to defrauding the public." Trusts and monopolies became the primary target of Square Deal legislation. -
Time Line of the Progressive Era from the Idea of America™
Time Line of The Progressive Era From The Idea of America™ Date Event Description March 3, Pennsylvania Mine Following an 1869 fire in an Avondale mine that kills 110 1870 Safety Act of 1870 workers, Pennsylvania passes the country's first coal mine safety passed law, mandating that mines have an emergency exit and ventilation. November Woman’s Christian Barred from traditional politics, groups such as the Woman’s 1874 Temperance Christian Temperance Union (WCTU) allow women a public Union founded platform to participate in issues of the day. Under the leadership of Frances Willard, the WCTU supports a national Prohibition political party and, by 1890, counts 150,000 members. February 4, Interstate The Interstate Commerce Act creates the Interstate Commerce 1887 Commerce act Commission to address price-fixing in the railroad industry. The passed Act is amended over the years to monitor new forms of interstate transportation, such as buses and trucks. September Hull House opens Jane Addams establishes Hull House in Chicago as a 1889 in Chicago “settlement house” for the needy. Addams and her colleagues, such as Florence Kelley, dedicate themselves to safe housing in the inner city, and call on lawmakers to bring about reforms: ending child labor, instituting better factory working conditions, and compulsory education. In 1931, Addams is awarded the Nobel Peace Prize. November “White Caps” Led by Juan Jose Herrerra, the “White Caps” (Las Gorras 1889 released from Blancas) protest big business’s monopolization of land and prison resources in the New Mexico territory by destroying cattlemen’s fences. The group’s leaders gain popular support upon their release from prison in 1889. -
Richard T. Ely and Woodrow Wilson at “The Hopkins”
SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 The Shaping of a Future President’s Economic Thought Richard T. Ely and Woodrow Wilson at “The Hopkins” F CLIFFORD F. THIES AND GARY M. PECQUET homas Woodrow Wilson (1856–1924) was the first and is still the only president oftheUnitedStatestoholdanearneddoctoraldegree.HisPh.D.wasawarded T by the Johns Hopkins University (“The Hopkins”) in 1886. He was also the president of an institution of higher education and, unique among U.S. -
Wilson's New Freedom
p0538-543aspe-0517s5 10/17/02 8:54 AM Page 538 Wilson’s New Freedom MAIN IDEA WHY IT MATTERS NOW Terms & Names Woodrow Wilson established The passage of the Nineteenth •Carrie Chapman •Federal Reserve a strong reform agenda as a Amendment during Wilson’s Catt System progressive leader. administration granted women •Clayton Antitrust •Nineteenth the right to vote. Act Amendment •Federal Trade Commission (FTC) One American's Story On March 3, 1913, the day of Woodrow Wilson’s inauguration, 5,000 woman suffragists marched through hostile crowds in Washington, D.C. Alice Paul and Lucy Burns, the parade’s organizers, were members of the National American Woman Suffrage Association (NAWSA). As police failed to restrain the rowdy gathering and congressmen demanded an investi- gation, Paul and Burns could see the momentum building for suffrage. By the time Wilson began his campaign for a second term in 1916, the NAWSA’s president, Carrie Chapman Catt, saw victory on the horizon. Catt expressed her optimism in a letter to her friend Maud Wood Park. A PERSONAL VOICE CARRIE CHAPMAN CATT “ I do feel keenly that the turn of the road has come. I really believe that we might pull off a campaign which would mean the vote within the ▼ next six years if we could secure a Board of officers who would have sufficient Carrie Chapman Catt momentum, confidence and working power in them. Come! My dear Mrs. Park, gird on your armor once more.” —letter to Maud Wood Park Catt called an emergency suffrage convention in September 1916, and invit- ed President Wilson, who cautiously supported suffrage. -
Gold Democrats and the Decline of Classical Liberalism, 1896–1900
SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 Gold Democrats and the Decline of Classical Liberalism, 1896–1900 —————— ✦ —————— DAVID T. BEITO AND LINDA ROYSTER BEITO n 1896 a new political party was born, the National Democratic Party (NDP). The founders of the NDP included some of the leading exponents of classical I liberalism during the late nineteenth century. Few of those men, however, fore- saw the ultimate fate of their new party and of the philosophy of limited government that it championed. -
JUMPING SHIP: the DECLINE of BLACK REPUBLICANISM in the ERA of THEODORE ROOSEVELT, 1901—1908 a Thesis Presented to the Graduat
JUMPING SHIP: THE DECLINE OF BLACK REPUBLICANISM IN THE ERA OF THEODORE ROOSEVELT, 1901—1908 A Thesis Presented to The Graduate Faculty of The University of Akron In Partial Fulfillment of the Requirements for the Degree Master of Arts Mark T. Tomecko August, 2012 JUMPING SHIP: THE DECLINE OF BLACK REPUBLICANISM IN THE ERA OF THEODORE ROOSEVELT, 1901—1908 Mark T. Tomecko Thesis Approved: Accepted: _______________________________ ______________________________ Advisor Dean of the College Dr. Tracey Jean Boisseau Dr. Chand Midha _______________________________ ______________________________ Department Chair Dean of the Graduate School Dr. Martin Wainwright Dr. George Newkome ______________________________ Date ii ABSTRACT Most analysts of black voting patterns in the United States have assumed that the first substantive abandonment of the Republican party by black voters occurred in the 1930s, when the majority of black voters embraced Franklin Roosevelt‘s New Deal. A closer examination, however, of another Roosevelt presidency – that of Theodore Roosevelt (1901-1909) – demonstrates the degree to which black voters were already growing disenchanted with the Republicans in the face of what they viewed as uneven support and contradictory messages from the highest ranking Republican in the land. Though the perception of Theodore Roosevelt‘s relationship to black Americans has been dominated by his historic invitation of Booker T. Washington to dine with him at the White House in 1901, in fact even this event had assorted and complex meanings for Roosevelt‘s relationship to the black community. More importantly, his dismissal of black troops following a controversial shooting in southern Texas in 1906 – an event known as the Brownsville affair – set off a firestorm of bitter protest from the black press, black intellectuals, and black voters. -
Chapter 18 Video, “The Stockyard Jungle,” Portrays the Horrors of the Meatpacking Industry First Investigated by Upton Sinclair
The Progressive Movement 1890–1919 Why It Matters Industrialization changed American society. Cities were crowded with new immigrants, working conditions were often bad, and the old political system was breaking down. These conditions gave rise to the Progressive movement. Progressives campaigned for both political and social reforms for more than two decades and enjoyed significant successes at the local, state, and national levels. The Impact Today Many Progressive-era changes are still alive in the United States today. • Political parties hold direct primaries to nominate candidates for office. • The Seventeenth Amendment calls for the direct election of senators. • Federal regulation of food and drugs began in this period. The American Vision Video The Chapter 18 video, “The Stockyard Jungle,” portrays the horrors of the meatpacking industry first investigated by Upton Sinclair. 1889 • Hull House 1902 • Maryland workers’ 1904 opens in 1890 • Ida Tarbell’s History of Chicago compensation laws • Jacob Riis’s How passed the Standard Oil the Other Half Company published ▲ Lives published B. Harrison Cleveland McKinley T. Roosevelt 1889–1893 ▲ 1893–1897 1897–1901 1901–1909 ▲ ▲ 1890 1900 ▼ ▼ ▼▼ 1884 1900 • Toynbee Hall, first settlement • Freud’s Interpretation 1902 house, established in London of Dreams published • Anglo-Japanese alliance formed 1903 • Russian Bolshevik Party established by Lenin 544 Women marching for the vote in New York City, 1912 1905 • Industrial Workers of the World founded 1913 1906 1910 • Seventeenth 1920 • Pure Food and • Mann-Elkins Amendment • Nineteenth Amendment Drug Act passed Act passed ratified ratified, guaranteeing women’s voting rights ▲ HISTORY Taft Wilson ▲ ▲ 1909–1913 ▲▲1913–1921 Chapter Overview Visit the American Vision 1910 1920 Web site at tav.glencoe.com and click on Chapter ▼ ▼ ▼ Overviews—Chapter 18 to preview chapter information. -
Roaring Twenties,”
1 THIS IS AN OPTIONAL ENRICHMENT ASSIGNMENT. PRINT AND COMPLETE IN INK. Name:________________________________________ Class Period:_____ The Modern Era of the “Roaring Twenties,” Reading Assignment: Chapter 23 in AMSCO or other resource covering the 1920s. Mastery of the course and AP exam await all who choose to process the information as they read/receive. This is an optional assignment. So… young Jedi… what is your choice? Do? Or do not? There is no try. Pictured at left: Al Capone, Louis Armstrong, Flappers, John Scopes, Babe Ruth, public domain photos, WikiCommons) Directions: 1. Pre-Read: Read the prompts/questions within this guide before you read the chapter. 2. Skim: Flip through the chapter and note titles and subtitles. Look at images and read captions. Get a feel for the content you are about to read. 3. Read/Analyze: Read the chapter. If you have your own copy of AMSCO, Highlight key events and people as you read. Remember, the goal is not to “fish” for a specific answer(s) to reading guide questions, but to consider questions in order to critically understand what you read! 4. Write: Write (do not type) your notes and analysis in the spaces provided. Complete it in INK! Learning Goals: Defend or refute the following statement: The American economy and way of life dramatically changed during the 1920s as consumerism became the new American ideal. Identify and evaluate specific ways the culture of modernism in science, the arts, and entertainment conflicted with religious fundamentalism, nativism, and Prohibition. To what extent did the 1920s witness economic, social, and political gains for African Americans and women? To what extent did these years “roar?” To what extent was American foreign policy in the 1920s isolationist? Key Concepts FOR PERIOD 7: Key Concept 7.1: Growth expanded opportunity, while economic instability led to new efforts to reform U.S. -
Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy
brazilianpoliticalsciencereview ARTICLE Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy Angelo Segrillo Department of History, University of São Paulo Liberalism and Marxism are two schools of thought which have left deep imprints in sociological, political and economic theory. They are usually perceived as opposite, rival approaches. In the field of democracy there is a seemingly in- surmountable rift around the question of political versus economic democracy. Liberals emphasize the former, Marxists the latter. Liberals say that economic democracy is too abstract and fuzzy a concept, therefore one should concentrate on the workings of an objective political democracy. Marxists insist that political democracy without economic democracy is insufficient. The article argues that both propositions are valid and not mutually exclu- sive. It proposes the creation of an operational, quantifiable index of economic democracy that can be used alongside the already existing indexes of political democracy. By using these two indexes jointly, political and economic democracy can be objectively evaluated. Thus, the requirements of both camps are met and maybe a more dialogical approach to democracy can be reached in the debate between liberals and Marxists. The joint index is used to evaluate the levels of economic and political democracy in the transition countries of Eastern Europe. Keywords: democratic theory; transition countries; economic democracy Introduction iberalism and Marxism are two schools of thought which have left deep imprints Lin political, sociological and economic theory. Both have been very fruitful in il- luminating a wide range of common issues across these fields and yet are usually perceived 8 bpsr Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy as opposite, rival approaches contradicting each other in general. -
A) Read the Parts on President Roosevelt. Make Sure You Can Describe His Background and the Actions He Took While He Was President
Directions: a) Read the parts on President Roosevelt. Make sure you can describe his background and the actions he took while he was president. Once you are done, write a summary of Roosevelt’s domestic policies on the attached handout as if you were Roosevelt. Don’t be afraid to brag, he certainly wasn’t. USE SPECIFICS! b) Read the parts on President Wilson. Make sure you can describe how he was elected and his actions as president. Once you are done, write a summary of Wilson’s domestic policies on the attached handout as if you were Wilson. He was a little more reserved than Roosevelt. USE SPECIFICS! c) Answer the questions on the back of the handout. Use information from Progressive Reformers handout as well. USE SPECIFICS! d) Write a thesis answering the question on the bottom. 1 – How did President Theodore Roosevelt address problems that concerned Progressives? How successful was he in his efforts? (All readings from the Roosevelt Center at Dickinson State University unless otherwise noted.) Use the info to write Roosevelt’s opinion of himself. Theodore Roosevelt (Introduction): (from the Gilder Lehrman Institute) Among progressivism’s greatest champions was Theodore Roosevelt. Roosevelt had a genius for publicity, using the presidency as a “bully pulpit” to bring progressivism to the national stage. Roosevelt’s roots were in New York City and state government, where he served as state assemblyman, New York City police commissioner, and governor. As governor, he signaled his reformist sympathies by supporting civil service reform and a new tax on corporations. Republican Party elders found him so troublesome in the governor’s office that in 1900 they proposed him for the vice presidency, a sure-fire route to political insignificance.