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Although Roosevelt enjoyed the nickname “the Trustbuster,” he did not consider all trusts dangerous to the public welfare. The “good trusts,” Roosevelt reasoned, used their power in the marketplace and economies of scale to deliver goods and services to customers more cheaply. For example, he allowed Morgan’s U.S. Steel Corporation to continue its operations and let it take over smaller steel companies. At the same time, Roosevelt used the presidency as a “bully pulpit” to publicly denounce “bad trusts”—those corporations that exploited their market positions for short-term gains—before he ordered prosecutions by the Justice Department. In total, Roosevelt initiated over two dozen successful anti-trust suits, more than any president before him.

Roosevelt also showed in other contexts that he dared to face the power of corporations. When an anthracite coal strike gripped the nation for much of the year in 1902, Roosevelt directly intervened in the dispute and invited both sides to the White House to negotiate a deal that included minor wage increases and a slight improvement in working hours. For Roosevelt, his intervention in the matter symbolized his belief that the federal government should adopt a more proactive role and serve as a steward of all Americans ( [link] ). This stood in contrast to his predecessors, who had time and again bolstered industrialists in their fight against workers’ rights with the deployment of federal troops.

A cartoon entitled
This cartoon shows President Roosevelt disciplining coal barons like J. P. Morgan, threatening to beat them with a stick labeled “Federal Authority.” It illustrates Roosevelt’s new approach to business.

The square deal

Roosevelt won his second term in 1904 with an overwhelming 57 percent of the popular vote. After the election, he moved quickly to enact his own brand of Progressivism, which he called a Square Deal    for the American people. Early in his second term, Roosevelt read muckraker Upton Sinclair’s 1905 novel and exposé on the meatpacking industry, The Jungle . Although Roosevelt initially questioned the book due to Sinclair’s professed Socialist leanings, a subsequent presidential commission investigated the industry and corroborated the deplorable conditions under which Chicago’s meatpackers processed meats for American consumers. Alarmed by the results and under pressure from an outraged public disgusted with the revelations, Roosevelt moved quickly to protect public health. He urged the passage of two laws to do so. The first, the Meat Inspection Act of 1906, established a system of government inspection for meat products, including grading the meat based on its quality. This standard was also used for imported meats. The second was the Pure Food and Drug Act of 1906, which required labels on all food and drug products that clearly stated the materials in the product. The law also prohibited any “adulterated” products, a measure aimed at some specific, unhealthy food preservatives. For Sinclair, this outcome was a disappointment nonetheless, since he had sought to draw attention to the plight of workers in the slaughterhouses, not the poor quality of the meat products. “I aimed at the public’s heart, and by accident I hit it in the stomach,” he concluded with frustration.

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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hi
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hi
Mahesh
Hi
Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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