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economy
progressive era
Question | Answer |
---|---|
What were people encouraged to do with their money? | put it in the bank bc ppl might steal it, but most ppl distrusted the bank |
panic of 1907 | 1. banks gives out too many loans, 2. people afraid they wont get their money back, so they go to bank and take out as much money as they can 3. banks runs out of money 4. if you didn’t get your money back then there was nothing you could do |
Issues with banks | No taxes or no national reserve (when the bank runs out of money, no money left) |
Solution | 1. federal Reserve Act (Woodrow)-made a central bank 2. Clayton Act - got rid of monopolies and trust issues (actually worked) 3. 16th amendment - graduated income tax, rich are taxed more but didnt like it 4. TR, Woodrow, and Taft established laws |
Was economic reform effective | 1. yes 2. Helped rebuild financial aspect 3. economic stability |