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In his first term, Wilson supported a Democratic Congress to pass the Federal Reserve Act, Federal Trade Commission, the Clayton Antitrust Act, the Federal Farm Loan Act and America's first-ever federal progressive income tax in the Revenue Act of 1913. In a move that garnered a backlash from civil rights groups, and is still criticized today, Wilson supported imposing segregation in many federally funded agencies, which involved firing black workers from numerous posts.
Narrowly re-elected in 1916, Wilson's second term centered on World War I. He based his re-election campaign around the slogan "he kept us out of the war," but U.S. neutrality would be short-lived. When German Foreign Secretary Arthur Zimmermann sent a message to Mexico offering to return Arizona, New Mexico and Texas to them if they would ally with Germany in the event of war, and began unrestricted submarine warfare, Wilson wrote several admonishing notes to Germany, and, finally in April 1917, asked Congress to declare war. He focused on diplomacy and financial considerations, leaving the waging of the war primarily in the hands of the military establishment. On the home front, he began the United States' first effective draft in 1917, raised billions in war funding through Liberty Bonds, set up the War Industries Board, promoted labor union growth, supervised agriculture and food production through the Lever Act, took over control of the railroads, enacted the first federal drug prohibition, and suppressed anti-war movements. National women's suffrage was also achieved under Wilson's presidency.
In the late stages of the war, Wilson took personal control of negotiations with Germany, including the armistice. He issued his Fourteen Points, his view of a post-war world that could avoid another terrible conflict. He went to Paris in 1919 to create the League of Nations and shape the Treaty of Versailles, with special attention on creating new nations out of defunct empires. Largely for his efforts to form the League, he was awarded the Nobel Peace Prize. In 1919, during the bitter fight with the Republican-controlled Senate over the U.S. joining the League of Nations, Wilson collapsed with a debilitating stroke. He refused to compromise, effectively destroying any chance for ratification. The League of Nations was established anyway, but the United States never joined. Wilson's idealistic internationalism, now referred to as "Wilsonianism", which calls for the United States to enter the world arena to fight for democracy, has been a contentious position in American foreign policy, serving as a model for "idealists" to emulate and "realists" to reject ever since.
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