Business Reform under Woodrow Wilson

New Nationalism vs. New Freedom

Compare and contrast Theodore Roosevelt’s “New Nationalism” to Woodrow Wilson’s “New Freedom.” What happened to the New Freedom once Wilson was in office?

In the early 20th century, the United States was undergoing a period of unprecedented change. Industry was booming, and the country was becoming increasingly urbanized. In this climate of transformation, two prominent politicians emerged with very different visions for the future of the nation. Theodore Roosevelt, a Republican, championed what he called the “New Nationalism.” This philosophy focused on the role of the federal government in eliminating monopolies. Roosevelt was staunchly opposed to unfair dealings in business, and he wanted to bust the trusts. On the other hand, Woodrow Wilson, a Democrat, campaigned on a platform of “New Freedom” in 1912 and wanted to be seen as more friendly to big business and workers both. He wanted to regulate industries through federal agencies rather than simply break up monopolies. Both agendas could be seen as progressive, however. Those who supported Wilson’s New Freedom saw it as more of a hands-off approach to business, which of course big business proprietors liked as it meant they could dominate in the free market system that they used to their advantage.

Wilson’s New Freedom was successful on three fronts: tariff reform, business reform, and banking reform—at least that is how it appears on paper. People like Ron Paul and G. Edward Griffin beg to differ on the banking front, arguing that the creation of the Federal Reserve in 1913 was one of the worst things ever to happen to the control because it put a cabal of bankers in charge of the nation’s money supply. On the business front, however, the Federal Trade Commission Act of 1914 was passed to give the federal government the authority to investigate and stop illegal or unfair business dealings.