ABSTRACT
The Progressive Era, spanning from the 1890s to the end of World War I, brought rapid and dramatic reforms that combined democratization, an expansive policy agenda, and a profound transformation in the understanding of the state and its role in the economy. By the end of the period, regulations had been extended to corporate organization, railroads, food and drugs, natural resources, and finance. Initiatives were combined with novel experiments in institutional design that departed from established constitutional principles and placed a heavy reliance on scientific and social scientific expertise. The new regulatory policies had significant consequences, both intended and unanticipated, on the organization and evolution of the modern corporate economy. Although there were other significant changes (e.g., the ratification of the 16th Amendment authorizing an income tax), this chapter focuses on the regulatory legacy. Before exploring the Progressive Regime in greater detail, we need to survey briefly the broad changes in the economy. The rise of the modern corporation and the emergence of national markets raised serious questions about the balance of public and private power.
