Truman's Post War Reconstruction Flashcards
1
Q
What was the US economy like under Truman?
A
- after war ended, only demobilised 9 million soldiers, then 1.5 million more in 1946: prompted some short term unemployment but never ran higher than 5% under Truman
- consumer boom led to an inflation rate of 25% in 1945-46: Truman proposed a Price Control Bill in 1946, but it was watered down by Congress
- later that year, Council of Economic Advisors created, as well as Employment Act, committing the country to “maximum employment”
- GI bill provided government help in getting a 90% mortgage, 52 weeks of unemployment benefit, and loans for college education: invested $20 billion
- baby boom of 1945-50 created a huge new market for goods and stimulated housing - e.g. development of suburban housing sites such as Levittown, and booming car sales
- by 1948, total output had increased by 90% on 1939 levels, industrial output doubled and agricultural output increased by 1/3
- employment also grew from 46million to 61million
2
Q
What political divisions did Truman face?
A
- Republicans won control of the House and the Senate leading to political gridlock
- opponent Thomas Dewey ran a cautious and aloof campaign whilst Truman toured the country remorselessly railing at gridlock resulting from Republicans
- led to Democrats regaining the House and the Senate so Truman could complete the next term with more domestic cooperation
3
Q
What domestic problems did Truman face?
A
- due to the spike in birth rate, there was an increased demand for housing in the suburbs and increased pressure on the school system
- demand for war material ended so jobs were threatened: however economy adapted as factories changed what they produced to serve a new market
- unemployment rose to 5% by 1950 and worst affected were women and minority groups who weren’t protected by trade unions
4
Q
What trouble did Truman face with trade unions?
A
- Truman announced that he would maintain price controls but unions could pursue higher wages
- this led to strikes across steel, coal, auto and railroad industries, debilitating key sectors of the economy and stifling production of certain consumer goods
- to end strikes, Truman recommended compulsory mediation and arbitration, warned that the government would draft striking railroad workers, and took a union (United Mine Workers) to court
- unions backed down but Truman had damaged an important element of his party’s support base
5
Q
What was the Fair Deal?
A
- failed to pass many measures in his 21-point programme of 1945, but after his election victory his newfound legitimacy led him to introduce the Fair Deal
Measures included:
- federal aid to education
- tax cuts for low income earners and an increase in public housing
- the abolition of poll taxes
- anti-lynching laws
- a permanent and better funded FEPC
- the establishment of a new Department of Welfare
- minimum wage increase
- national health insurance and expanded Social Security coverage
6
Q
What was the impact of the Fair Deal?
A
- by 1953, 62million Americans were employed, an increase of 11million under Truman, and unemployment was virtually zero
- no bank had failed in nearly nine years
- minimum wage increased and social security benefits doubled
- 7.8 million veterans benefitted from the GI bill
- inner city slums cleared (however negative impact on African Americans as slums weren’t replaced with affordable housing quickly enough so rents skyrocketed)
- poverty decreased from 33% of pop. in 1949 to 28% by 1952
7
Q
Why was McCarthyism rising?
A
- senator Joseph McCarthy claimed to have a list of 205 Communist members in the US State Department - spread widespread fear
Factors fear can be attributed to:
- economic fear amongst rich
- military fear of size and aggression of USSR and China
- rise of organised labour
- the successful Soviet nuclear test in 1949
- as Truman entered ‘lame duck’ phase of presidency, failed to veto 1952 Internal Security Act which allowed communists to be denied passports
