New Freedom

Definition

The New Freedom was a progressive political platform and legislative agenda introduced by President Woodrow Wilson during his 1912 presidential campaign and implemented during his first term in office from 1913 to 1917. It emphasized a series of reforms aimed at curbing the power of large corporations and promoting greater economic and social justice for the common citizen.

5 Must Know Facts For Your Next Test

1. The New Freedom was a response to the growing power of large corporations and trusts, which Wilson believed threatened economic opportunity and individual liberty.
2. Wilson's New Freedom agenda included reforms such as the Federal Reserve Act, which created a central banking system, and the Clayton Antitrust Act, which strengthened antitrust laws.
3. The New Freedom sought to limit the influence of big business and promote a more competitive, decentralized economy through measures like trustbusting and financial regulation.
4. Wilson's New Freedom policies were aimed at empowering small businesses and farmers, as well as protecting consumers from the abuses of large corporations.
5. The New Freedom represented a shift in progressive thought, moving away from the more centralized, government-led reforms of the earlier Progressive Era.

Review Questions

• Describe the key goals and reforms of Woodrow Wilson's New Freedom agenda.
  • The New Freedom was Woodrow Wilson's progressive political platform that aimed to curb the power of large corporations and promote greater economic and social justice for the common citizen. Key reforms included trustbusting to break up monopolistic trusts, the creation of the Federal Reserve to regulate the money supply, and the passage of the Clayton Antitrust Act to strengthen anti-competitive regulations. These measures were designed to empower small businesses and farmers, as well as protect consumers from the abuses of big business.
• Explain how the New Freedom differed from the earlier Progressive Era reforms.
  • While the earlier Progressive Era reforms had focused on a more centralized, government-led approach to addressing social and economic problems, the New Freedom represented a shift in progressive thought. The New Freedom emphasized decentralizing power and promoting a more competitive, free-market economy through measures like trustbusting and financial regulation, rather than relying on increased government intervention. This shift reflected Wilson's belief that the power of large corporations posed a greater threat to individual liberty and economic opportunity than the government itself.
• Analyze the long-term impact of the New Freedom reforms on the American economy and society.
  • The New Freedom reforms had a lasting impact on the American economy and society. The creation of the Federal Reserve helped stabilize the financial system and provided a more reliable money supply, while the strengthening of antitrust laws curbed the power of monopolies and promoted greater competition. These measures contributed to the growth of small businesses and a more decentralized economy, which in turn fostered greater economic opportunity and social mobility. However, the long-term effects of the New Freedom were complex, as the government's role in regulating the economy continued to evolve, and debates over the appropriate balance between corporate power and individual liberty persisted in the decades that followed.

Related terms

Trustbusting: The government's policy of breaking up large monopolistic corporations, or 'trusts,' in order to promote competition and protect consumers.

Federal Reserve Act:

Legislation passed in 1913 that created a central banking system, the Federal Reserve, to regulate the money supply and provide stability to the financial system.

Clayton Antitrust Act:

A 1914 law that strengthened antitrust regulations and prohibited certain anti-competitive business practices, such as price discrimination and interlocking directorates.