Early Truman Economy

Question 1

A negative and positive consequence of: War time allies are ruined

Answer 1

P- Help rebuild Europe and use the Marshall Plan for trade.
N- Countries will struggle to afford trade and this will affect America.

Question 2

A negative and positive consequence of: Power of the President

Answer 2

P- Stops the president from forming a dictatorship.
N- Might not give presidents enough time to do things.

Question 3

A negative and positive consequence of: The Cold War

Answer 3

P- Increase economy and invest in high tech.
N- Expensive, could improve the economy instead.

Question 4

A negative and positive consequence of: Demobilisation of the Army

Answer 4

P- Soldiers can start families and spend wartime wages.
N- Cause short term inflation, ‘no boats no votes’ helped Republicans win.

Question 5

A negative and positive consequence of: Inflation

Answer 5

P- Factories have a higher demand for product, so more jobs.
N- More strikes, cost of living will rise, not enough jobs for returning GI.

Question 6

A negative and positive consequence of: Baby Boom

Answer 6

P- More products needed which boosts the economy, impacts economy in a decade or so.
N- Create inflationary pressure, people might need government help.

Question 7

A negative and positive consequence of: GI Bill of Rights

Answer 7

P- Education will increase number of higher paying jobs, upskilled them.
N- Cost the government $20 billion over a decade.

Question 8

A negative and positive consequence of: Mid Term Elections

Answer 8

P- Different views.
N- Struggle to make decisions, lack of confidence in government.

Question 9

A negative and positive consequence of: Democrat Internal Split

Answer 9

P- None
N- Rifts in the party reduces public and economic confidence.

Question 10

What was the 1944 GI Bill of Rights?

Answer 10

Veterans given 52 weeks unemployment pay.
Gave $20 billion to 7.8 million veterans from 1945-55.

Question 10

What happened in the 1946 mid-term elections?

Answer 10

Republicans won 246 seats compared to the 188 Democratic seats.

Question 11

What was the 22nd Amendment in 1947?

Answer 11

President limited to two terms in office.

Question 12

What did the reduction in the army do?

Answer 12

Army went from 12 million to 3 million in year.
Unemployment never rose above 4%.

Question 13

What did the Federal Housing Agency want to do?

Answer 13

Tried to build houses for servicemen,
Congress and the factories refused to give any money.

Question 14

What was the Office of Price Administration?

Answer 14

Controlled prices during the war.
Wasn’t needed by 1946.

Question 15

What was the 1946 Hospital Survey and Construction Act?

Answer 15

Financial assistance of hospitals, it benefitted construction more.

Question 16

What was the Council of Economic Advisors?

Answer 16

Approved in 1946.
Would watch economy and recommend government action.
No more ‘laissez faire’ behaviour.

Question 17

What was the 1946 Employment Act?

Answer 17

President give annual report on economy.
Commitment to maximum employment (fill all jobs) not full employment (make more jobs).

Question 18

What happened during the 1946 Coal and Railway strike?

Answer 18

400,000 miners went on strike.
Truman overreacted and tried to draft miners in the army.

Question 19

What was the 1947 Taft-Hartley Act?

Answer 19

Unions stopped from bargaining for wages.
Truman vetoed, but congress overrode his veto.

Question 20

What was the 1947 Marshall Plan?

Answer 20

Creative a captive market for American goods.
Invested $17 billion over 4 years into rebuilding Europe.

Question 21

What was the 1949 Fair Labours Standard Act?

Answer 21

Increased minimum wage to 75 cents from 40 cents an hour.

Question 22

What was the 1949 Housing Act?

Answer 22

Planned to build 810,000 houses.
By 1952 there were only 156,000 (1/5).

Question 23

What was the 1950 National Science Foundation Act?

Answer 23

Encouraged scientific development and helped the Cold War.

Question 24

What happened in the 1952 Steel Workers strike?

Answer 24

Truman used Executive Order 10340 to seize the steel mills.
Factories took Truman to the Supreme Court and won.
After giving them back, there was a 7 week strike.