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Progressive Era

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Business Law

Definition

The Progressive Era was a period in the late 19th and early 20th centuries characterized by widespread social activism and political reform aimed at addressing issues caused by industrialization, urbanization, and corruption in government. It focused on creating regulatory frameworks to protect consumers and promote fair business practices, which ultimately led to significant changes in American society, including the establishment of key institutions like the Federal Trade Commission.

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5 Must Know Facts For Your Next Test

  1. The Progressive Era spanned from approximately the 1890s to the 1920s, reflecting a response to the rapid changes brought by the Industrial Revolution.
  2. One of the major achievements of this era was the establishment of the Federal Trade Commission in 1914, aimed at preventing unfair business practices and protecting consumers.
  3. The movement led to significant reforms in labor laws, including child labor restrictions, women’s suffrage, and improved working conditions.
  4. Progressives advocated for various social justice issues, including civil rights for African Americans, leading to organizations like the NAACP being founded.
  5. The era also saw the implementation of direct democracy measures such as initiatives, referendums, and recalls to give more power to voters.

Review Questions

  • How did the Progressive Era lead to the creation of regulatory agencies like the Federal Trade Commission?
    • The Progressive Era emphasized the need for government intervention to correct social injustices and regulate big businesses that often exploited consumers. This public demand for oversight resulted in Congress establishing the Federal Trade Commission in 1914. The FTC was tasked with enforcing antitrust laws and promoting consumer protection, embodying the era's focus on regulating corporate practices to ensure fair competition and consumer rights.
  • Evaluate the role of muckrakers in shaping public opinion during the Progressive Era.
    • Muckrakers played a crucial role in the Progressive Era by uncovering corruption and exposing societal issues through investigative journalism. Their work informed the public about corporate malpractices, unsafe living conditions, and political corruption, stirring a desire for reform. This heightened awareness pressured lawmakers to act on these issues, leading to significant legislative changes aimed at protecting consumers and improving social conditions.
  • Assess how trust-busting efforts during the Progressive Era influenced modern business regulations.
    • Trust-busting efforts during the Progressive Era fundamentally transformed how businesses are regulated today. By breaking up monopolies that restricted competition, reformers established a precedent for government intervention in economic matters. This movement laid the groundwork for ongoing regulations that prevent anti-competitive practices and protect consumer interests, shaping a modern economic landscape where regulatory bodies like the Federal Trade Commission continue to enforce fair business practices.
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