Final answer:
President Woodrow Wilson advocated for a federal government role in the economy, as evidenced by the creation of the Federal Reserve System and the passage of the Clayton Antitrust Act. These actions demonstrated a significant departure from laissez-faire economics to a more interventionist federal role in economic and social welfare.
Step-by-step explanation:
Woodrow Wilson believed the federal government should play an active role in managing economic issues through measures like financial reform and antitrust legislation. The establishment of the Federal Reserve System in 1913 was a pivotal move toward federal oversight of the economy, aiming to keep credit availability and money supply in pace with economic growth while giving the government the power to issue currency and support banks in crises. Furthermore, the Clayton Antitrust Act of 1914 represented a break from laissez-faire economics by strengthening regulations against monopolistic practices and supporting trade unions.
Wilson's administration marked a shift from the previous expectation that the government's role was limited to a hands-off approach to one where the federal government had a duty to intervene directly in economic affairs to protect and support the citizenry and the nation's economic interests. This included offering more freedom and opportunities to small businesses while advocating for the diminishing power of large trusts. This philosophy extended into labor rights and social welfare, indicating a broader scope of government responsibility.