The next decade began with a downturn that lasted two years, until the start of 1912. President William H. Taft had succeeded Roosevelt, but continued many of his policies, including the dismantling of trusts and regulation of railroads. At the end of his term, the 16th Amendment was passed, which created a federal income tax.
Two recessions followed. The first began in 1913 and lasted through the end of 1914. President Woodrow Wilson had just taken office. During the earlier part of his term, the US created the Federal Reserve and revised import tariffs. Later that decade, a seven-month recession occurred during World War I that resulted in increased in consumer prices and income taxes.
Here, workers picket at a textile factory in Lawrence in 1912.