Economy Flashcards
What was the major transition of the US economy under Truman?
Transitioning from war to peace
This transition involved soldiers returning to work and shifts in economic focus.
What legislation was passed in 1946 to support employment?
Employment Act 1946
This act aimed to promote maximum employment, production, and purchasing.
What was the primary sector where most soldiers found jobs after returning from service?
Manufacturing
The manufacturing sector experienced significant growth during this period.
What caused inflation to rise after the war?
Demand for consumer goods after years of rationing
Inflation rates reached 25% during this time.
What was the annual inflation rate projected for 1945-46?
18%
This projection indicated a significant inflation spike in the post-war economy.
What benefits did the GI Bill of Rights provide to veterans?
52 weeks of employment pay and $520 billion to 7.8 million veterans
This legislation, enacted in 1944, supported veterans’ reintegration into civilian life.
How many troops were demobilized after the war under Truman’s orders?
9 million troops
Despite this demobilization, Truman maintained an army of 1 million.
What was the unemployment rate during Truman’s presidency?
Never sank below 5%
This indicates a relatively stable employment situation despite economic challenges.
What was the purpose of the Price Control Bill of 1946?
To address inflation and control prices
However, the bill was significantly weakened by Congress.
What act passed in 1947 allowed the President to order cooling-off periods?
Taft-Hartley Act
This act was significant in regulating labor relations.
What did Truman suggest to help manage the economy?
Council of Economic Advisers (CEA)
This body was intended to provide advice on economic policy.
What was the percentage increase in total output reported in the 1952 economic report?
90%
This figure highlighted significant economic growth during Truman’s administration.
How much money was spent by US citizens on war bonds?
$185 billion
This investment contributed to the economic boost after the war.
What was the inflation rate mentioned in relation to the war bonds?
25%
This rate reflects the economic conditions during the post-war period.
What challenges did factories face after the withdrawal of wartime prices?
Factories struggled
This struggle was due to adjustments in the economic landscape post-war.
What did employers want to do regarding prices and wages?
Raise prices and keep wages down
This created tension with labor unions during the economic transition.
What did unions demand during the post-war economic period?
Pay raises
This was a response to inflation and rising living costs.
