The role of government in regulating the economy and the market has always been a disputable issue. A wide range of famous, well–known, and recognized economists and politicians held rampant discussions regarding the government role in the economy. In general, the lines of discussions may be divided into two opposing views: 1) for the active role of government in the economy and 2) self–regulating power of the markets. The dominant view on the government role in the economy has significant and usually decisive role in choosing the main economic course of the country, as well as economic measures and policies implemented by the government. The Progressive Era and the New Deal Era differed in the perceptions of the federal government role and its influence on the economy, as well as its interactions with the market. The Progressive Era is the period of US history from 1890 – 1920, which is remarked with low government regulation, social activism, and political reform aimed at eliminating corruption, inefficiency, and irresponsibility of political structures. The inefficiency and stubbornness of political structures and organizations in monitoring and regulating big business and ensuring the welfare of the population has provoked the development and implementation of reformative measures. The corruption and failures of political structures have been widely discussed and revealed to the public by pro-active journalists, known as muckrakers. The major political reforms included the imposition of an income tax, direct election of Senators instead of selection by state legislatures, and women’s suffrage. The political changes have also intensified social activism aimed at promoting fair principles of payments at workplace, introduction of social payments, ensuring of workers’ rights, and women active role in the political elections. Although the Progressive Era has become the period of both political and social reforms, the gover