1941 - 1954 postwar prosperity Flashcards
Economy during the war
GNP had grown 35% since 1941. During the war when consumer goods were not available and therefore people saved their money and thats why consumer spending went up after the war. Consumer boom.
Former combatants were given $20 a week while looking for work however less than 20% of the money set aside was spent because there were so many jobs.
Was now easier to get a house in the suburbs, and university fees were payed for by govt. for ex army.
Economic bill of rights
1944 proposed that everyone should be entitled to fair wages, a descent home, security in old age and sickness and fair compassion between companies.
GI Bill of rights
1944 offering grants to veterans to improve their education, learn new skills or set up business. 8Million took advantage of this.
Offered $20 a week for a solider look for work but only 20% of the finds were used.
Low interest houses were available, leading to many moving to the suburbs.
Labour discontent
discontext becase govt. removed wartime prices before they removed the restriction on wage rises. Creating a period of inflation were food prices rose 25% between 1945 and 1947. During 1946 10% of labour force went on strike.
laboure discontent and how it benefited republicans
Help republicans take control of congress because they were committed to a legislation that restricted union activity. Truman threatened to draft stickers into the army.
Many people didn’t feel sorry for the discontent workers because they didn’t want anything to interfere with there now trouble free lives.
Taking advantage of the mood congress passed the Taft-hartley act, Truman tried to veto this but was unsuccessful.
The economic boom
The boom was filed buy consumer spending and military spending on the cold war. Was a strong trading time in terms of helping war torn europeans economies recover from the war.
Masha aid saw $13billion grant to western european countries, most then spent of good from US.
Military spending
Billions were spent on maintaining the a military presence throughout westerner Europe and southeast Asia, equipping weapons and development. Desert became main places for weapon testing.
Consumer spending
wages generally rose. 1958 average family income $4011. People came to value family lfe and there was a baby boom, birth rates increased by 25 per 1000.
The amount of amount of money people had to spend went up 17%.
Home owners went for 9million in 1950 to 33 million 10yrs later. By 1960 over 50million TV in the US, new shopping malls. Leisure time rose.
Some were worried that the house prices would go down ect however the boom just seemed to continue.
People were only now worried about the threat of the USSR and forgiven policies.
How goverment used the labour discontent
The republicans used this to take control of congress. Comparing the railway strike to the attack at parle harbour and threatened to draft the strikers into the army.
Taft-Hartley act
1947 taking advantage of the mood of the labour discontent, congress passes the taft-Hartley act, that outlaws the closed shop and secondary strikes and made union leaders swear to be non-communist.
Makes unions activity very difficult.
Gave President the power to stop strikes if it damage national interest.
(closed shop - people in certain industries must belong to a union.
Secondary strike - where workers strike in support of others in dispute. )
The economic boom
The taft-harley act did not upset many workers because of their change in life style - growth in consumer spending and increased military spending for the cold war.
Marshall aid saw $13 billion sent to European counties for wartorn, and much was then spent again in the US.
Domestic response to communism
US was worried that there were communist support would come from influential places.
Fall of china to communism
The unexpected fall of china to communism, created a powerful group called ‘China lobby’, influectaul politicians, journalists and business investors campaignign action against the communist regime in china. Was believed that communism happened in china as a result of work of secrate communists within the state department.
spies for Communism
Spy scandal in UK, canada and the USA. Many arrested for giving out secrets about the nuclear boom. No doubt that communism had influenced many branched of US govt. during the war. - later the USSR claimed they had 221 spys there.
Trail of Alger Hiss
Hiss was president of the carnegie institute.
A former communist Whittaker Chambers was now editor of the time ( an ant-comunist magazine.) accused Hiss of being a communist during hiss’ time at the state department. Was found that hiss had passed over copies of the secret document to the soviets in 1938.
This case lead to a widespread accusation of communism in high places. The house committee on un-American activties investigated those suspected of communism behaviour.
Hollywood and communism
some films were accsused of having communism content. Many from hollywood were traded and thoses who refused to answer the questions were known as the hollywood ten - mainly writers and directors, they were sent to jail, eg. charlie chaplin.
The second investigation produced a black list of people not to be employed by the film industry.
Goverment reaction to the communism 1947
President truman introduced the Loyalty Board to check on all government employees, over 4 years 1200 were fired.
over 150 organisations were banned, organisations that may be at risk of communist sympathies, including NAACP and CIO, many teachers at uni and primary schools were fired for suspected communist teachings. 11 leaders of the communist party were prosecuted - was said their believes suggest they would try and over through the govt.
When the USSR exploded their first nuclear boom, the arms race began .
McCarthyism
1950 McCathy mad a speech that suggested that the state department was infested with spies. This saw a witch hunt against the state department, other public servants and the army. McCathy became one of the most popular men in the USA,support came from less educated people - those more like to believe conspiracy theories.
accusing communist sympathies
the new deal was said to have been communist inspired , those supporting civil rights measures and any other redistribution of wealth were accused of being communist sympathies.
The fall of McCarthyism
His manners and accusations saw his downfall, he would accuse highly respected figures such as General Marshall. (who had introduced Marshall aid.) In 1954 he began to investigate the army - which the army was in full scale war against the communist korea. Millions saw the hearing on TV and turned against the bullying ways of McCathy, he appeared to be drunk. President Eisenhower (former military commander) was critical of McCathys investigation on the army. And the Red scare died away.
Production of tanks and aircrafts
86,000 tanks
296,000 aircrafts
15million tiffles
Unemployment falling
1940 —— 14.6%
1942 ——- 1.2%
Famers income
increased by 300%
GNP increased
1939 ——– $91.6 billion
1945 ——– $166.6billion
National debt
1941 ——– $41billion
1945 ——– $260billion
FDR planned to pay for this by increasing taxes, the highest earners paid 94% tax, creating a feeling of equality.
Movement for work
1 in 8 moves to find war work.
mostly moved from the south to the north and east to west.
The population of California rose by 72%.
increase in wages during the war
went up 40%.
prices rose 28%
