Truman’s Domestic Policy Flashcards
What was Keynesian Economics?
A conceptual theory from Adam Keynes where the government would pump money into the economy to stimulate its growth.
It was used by FDR but Truman was less keen
What was Truman keen on?
Liberal social reform
What position had America found itself in in 1945?
It was in a dominant economic position
Why was America economically dominant following the war?
Largely due to other countries being in disarray
Also due to countries owing America vast war loans.
How much money did Britain owe in war loans?
31 Billion Dollars
When was the Breton Woods meeting?
1st July 1944
What was the Bretton Woods meeting?
44 Allied nations met to discuss post-war options for the economy. Eventually established the International Monetary Fund and the World Bank.
How did the IMF and world bank establish America as powerful?
-Countries had to agree to tie their currencies to the Dollar
-Centred the new economic order around an American conception of capitalism
-Was set up in New York
What was the Fair Deal?
Truman’s. 21 policies for determining how to establish a strong American country.
What was encorporated into the Fair Deal?
The GI Bill
What was the GI Bill
Passed in 1944 by FDR it was a way to smoothen the demobilisation of the army
What specific terms were in the GI Bill?
90% mortgages
52 weeks unemployment benefit
loans for college education
How many veterans took up the GI bill?
7.8 million
How many people were left tin the army and what problems did this create?
Truman demobilised 9 million of the 3 million soldiers, meaning he had to find jobs for 9 million men returning to America
What were some key points in the Fair Deal?
Federal aid for education
Tax cuts for lowest earners
Increased public housing
Increase in minimum wage from 45-75 cents
What institutions were set up as part of the Fair deal?
Attempted to set up national health insurance
Created a departament of Welfare
Permanent FEPC
How much money was invested into the GI bill and was this good or bad?
20 billion. Good under a Keynesian lens as it provides a kickstarter for the economy and prevents unemployment however also contributed to a government deficit
What and when was the baby boom?
1945-1950 where tonnes of babies were born following WW2
What was the impact of the baby boom on the economy?
Created a massive market for homes and family lives, and we saw the establishment of suburban housing suhc as Levittown, Long Island.
Also meant more cars were sold.
How many cars were sold in 1946?
2.1 million
How many cars were sold in 1955?
7.9 million.
How much did war bonds put directly into people’s pockets?
185 million
How had industry developed in America by 1952?
industrial output had doubled and agricultural output was up by 1/3
Employment facts please
Employment rose from 46 million to 61 million
His unemployment never rose above 5%