(Economic transformation) Government policies to encourage growth

Question 1

Increased military spending - name 3 new industries that emerged as a result of WW2.

Answer 1

Nuclear physics
Electronics
Chemicals

Question 2

Increased military spending - name 2 of the giant corporations that became beneficiaries of the ‘military industrial complex’.

Answer 2

General Motors

Dow Chemical Corporation

Question 3

Increased military spending - what was the ‘military industrial complex’?

When did it begin?

Answer 3

Large areas of desert were used for military testing & large factories converted to armament production.

Began in WW2 & set the USA up Cold War military spending & development.

Question 4

Increased military spending - what did lots of spending & investment go into?

Answer 4

The Cold War

Question 5

Increased military spending - give evidence of spending & investment going into the Cold War.

(2)

Answer 5

Direct & indirect govt funding for scientific research into fields like plastics increased by 600% in the 50s.

Military defence budget was between $40 - $50 billion a year in the 50s.

Question 6

Reduced role of TUs - what % of the American workforce were members of Trade Unions by 1945?

What is significant about this?

Answer 6

35.5%

Highest in American history

Question 7

Reduced role of TUs - when was 35.5% of the American workforce members of Trade Unions?

Answer 7

1945

Question 8

Reduced role of TUs - what was lifted after WW2 ended?

What happened as a result?

Answer 8

Wartime price controls

Inflation began to rise

Question 9

Reduced role of TUs - after WW2 ended, wartime price controls were lifted and inflation started to rise.

What did this lead to?
Give evidence.

Answer 9

Discontent & a wave of strikes for higher wages.

In 1946, about 10% of the workforce went on strike at some point.

Question 10

Reduced role of TUs -what happened following the 1946 mid-term elections?

What happened as a result?

Answer 10

Republicans gained control of Congress.

The Taft-Hartley Act was passed.

Question 11

Reduced role of TUs - when was the Taft-Hartley Act passed?

Answer 11

1947

Question 12

Reduced role of TUs - what did the Taft-Hartley Act do?

Answer 12

Limited the power of the unions in favour of employers

Question 13

Reduced role of TUs - what is the main reason for the passing of the Taft-Hartley Act in 1947?

Answer 13

People were scared of a revolution.

Question 14

Reduced role of TUs - the Taft-Hartley Act limited the power of the unions in favour of employers.

How was this done?
(4)

Answer 14

Outlawed secondary strikes
Made it more difficult to call a strike
Union leaders had to swear they were non-communist.
Gave the president power to prevent strikes against the national interest.

Question 15

Reduced role of TUs - what is a secondary strike?

Answer 15

Striking in solidarity of other industries.

Question 16

What 3 government policies aided economic growth?

Answer 16

The GI Bill of Rights
Taft-Hartley Act
Increased military spending

Question 17

The history of the ________ _________ meant the USA was _______ _________ of __________.

Answer 17

a) Russian Revolution
b) overly scared
c) communism