Read Chapter 19 The Gilded Age: Problems
Wed Lesson 1, Do assignment on p. 227
Thu Lesson 2, Do the assignment on p. 229
Fri Lesson 3, Do assignment on. p. 230
Mon Lesson 4, Do assignment on p. 231
Read and analyze the following article from "The Politically Incorrect Guide to American History" by Thomas E. Woods, Jr., Ph.D. Be prepared to discuss American capitalism in class. Is it necessary for the government to interfere and regulate industries?
American textbooks are unanimous in praising the Hepburn Act: the only occasional criticism is that it didn't go far enough. Among other things, the act enforced an older requirement that railroads charge the same rates to all shippers. No problem, right? "It's only fair!"
Well, here's at least one problem. In order to open Chinese and Japanese markets for American products like cotton and wheat, railroad magnate James J. Hill, had offered discounts for freight intended for export to Asia that was being shipped along the Great Northern Railroad. According to the Hepburn Act, Hill had to offer these discounts to all shippers or not offer them at all. Since it was not economically possible to offer discounts to everyone, he was forced to stop altogether. As a result, American exports to Japan and China were substantially reduced in the wake of the act. Thus the regulation of rail rates, undertaken in the name of helping the common man, ended up sharply curtailing American agricultural sales in Asia- not exactly a recipe for helping American farmers. This is the kind of wisdom of government bureaucrats.
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