Populism

1. Populism • In the late 1800’s, the government had laissez-faire (hands off) policies which allowed big businesses to become extremely powerful. • At the same time, life for American farmers became increasingly difficult. • Populism was a movement to increase farmers political power and pass new laws to help them.

2. Problems Farmers Face • New machinery and abundant land allowed farmers to produce more crops than ever before. • A greater supply of crops decreased prices, which loses farmers money. • The more crops farmers grow, the more prices declined.

3. Problems Farmers Face • At the same time, the cost of doing business also rose. • To pay for new machinery, livestock, seed, and tools many farmers went into debt. • Many farmers risked having their farms foreclosed on (taken away by the bank) because they could not pay back their debts.

4. Problems Farmers Face • Big Business practices hurt farmers especially. • Railroad monopolies charged outrageous prices to ship crops (there was no government regulation because of their laissez-faire policies). • Big banks set interest rates (the extra fee you have to pay back for borrowing money) at ridiculously high levels which made it hard for farmers to get loans and even harder to pay back debts.

5. What do the Populists want? • Populists felt that it was becoming impossible to make a living as a farmer and wanted several changes to make it easier. • Wanted the government to regulate the railroad companies (stop them from charging such high rates) by breaking up monopolies or taking over the railroads.

6. What do the Populists want? • Wanted the government to adopt a graduated income tax (means the rich would pay a higher tax percentage than the poor) to increase economic equality.

7. What do the Populists want? • Wanted the government to increase the amount of money in the economy by minting silver coins as well as gold coins which would decrease the value of the dollar and make it easier to pay back loans and increase the price of crops.

8. What do the Populists want? • Wanted direct election of Senators by the people. • State Legislatures, who were often controlled by big business, elected Senators. • Populists wanted the common people to directly vote for the people who would represent them in the Senate, thus giving themselves more power.

9. The Election of 1896 • The Populists backed the democratic candidate William Jennings Bryan for president. • Bryan made the famous “Cross of Gold” speech in which he claimed that because all money was based on gold farmers were being crucified by the fact that there was a shortage of money which caused the price of crops to decrease and interest rates to increase. • Wanted silver to be used as money too.

10. The Election of 1896 • Bryan and the Populists lost the election to Republican William McKinley. • McKinley was supported by the big businesses. • Populists failed to get support beyond farmers. • The Populist party disappears forever. • Their only victory was drawing attention to the problems faced by farmers.

11. 1896 Presidential Election: Bryan loses but carries most of the South and West

12. Legacy of the Populists • Although the Populists were unsuccessful in the short term, most of the things they wanted (graduated income tax, government regulation of big business, etc.) ended up being accomplished during the Progressive movement in the early 1900’s. • They were an important part of accomplishing these reforms.

13. Legacy of the Populists • Within 15 years of the end of Populism: • 1911: Supreme Court orders that Rockefeller’s Standard Oil monopoly be broken up. • 1913: 16th amendment creates a graduated income tax in America. • 1913: 17th amendment establishes direct election of senators by the people.