Early Truman Economy Flashcards
A negative and positive consequence of: War time allies are ruined
P- Help rebuild Europe and use the Marshall Plan for trade.
N- Countries will struggle to afford trade and this will affect America.
A negative and positive consequence of: Power of the President
P- Stops the president from forming a dictatorship.
N- Might not give presidents enough time to do things.
A negative and positive consequence of: The Cold War
P- Increase economy and invest in high tech.
N- Expensive, could improve the economy instead.
A negative and positive consequence of: Demobilisation of the Army
P- Soldiers can start families and spend wartime wages.
N- Cause short term inflation, ‘no boats no votes’ helped Republicans win.
A negative and positive consequence of: Inflation
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.
A negative and positive consequence of: Baby Boom
P- More products needed which boosts the economy, impacts economy in a decade or so.
N- Create inflationary pressure, people might need government help.
A negative and positive consequence of: GI Bill of Rights
P- Education will increase number of higher paying jobs, upskilled them.
N- Cost the government $20 billion over a decade.
A negative and positive consequence of: Mid Term Elections
P- Different views.
N- Struggle to make decisions, lack of confidence in government.
A negative and positive consequence of: Democrat Internal Split
P- None
N- Rifts in the party reduces public and economic confidence.
What was the 1944 GI Bill of Rights?
Veterans given 52 weeks unemployment pay.
Gave $20 billion to 7.8 million veterans from 1945-55.
What happened in the 1946 mid-term elections?
Republicans won 246 seats compared to the 188 Democratic seats.
What was the 22nd Amendment in 1947?
President limited to two terms in office.
What did the reduction in the army do?
Army went from 12 million to 3 million in year.
Unemployment never rose above 4%.
What did the Federal Housing Agency want to do?
Tried to build houses for servicemen,
Congress and the factories refused to give any money.
What was the Office of Price Administration?
Controlled prices during the war.
Wasn’t needed by 1946.
What was the 1946 Hospital Survey and Construction Act?
Financial assistance of hospitals, it benefitted construction more.
What was the Council of Economic Advisors?
Approved in 1946.
Would watch economy and recommend government action.
No more ‘laissez faire’ behaviour.
What was the 1946 Employment Act?
President give annual report on economy.
Commitment to maximum employment (fill all jobs) not full employment (make more jobs).
What happened during the 1946 Coal and Railway strike?
400,000 miners went on strike.
Truman overreacted and tried to draft miners in the army.
What was the 1947 Taft-Hartley Act?
Unions stopped from bargaining for wages.
Truman vetoed, but congress overrode his veto.
What was the 1947 Marshall Plan?
Creative a captive market for American goods.
Invested $17 billion over 4 years into rebuilding Europe.
What was the 1949 Fair Labours Standard Act?
Increased minimum wage to 75 cents from 40 cents an hour.
What was the 1949 Housing Act?
Planned to build 810,000 houses.
By 1952 there were only 156,000 (1/5).
What was the 1950 National Science Foundation Act?
Encouraged scientific development and helped the Cold War.
