US Economy under Truman

Question 1

Why was their concern in terms of employment following Japan’s surrender in 1945?

Answer 1

It would meant 12 million veterans would return home + seek employment

Question 2

How did Truman respond to the employment concern for the veterans? (2 examples)

Answer 2

1944 - GI Bill of Rights (Roosevelt’s but continued by Truman)
1945 - Employment Act (‘to use all practical use’ to foster ‘maximum employment’)

Question 3

How much money did the GI Bill of Rights distribute to how many veterans?

Answer 3

It distributed $20 billion to 7.8 million veterans

Question 4

What else did the GI Bill of Rights give returning veterans? (2 examples)

Answer 4

52 weeks’ unemployment pay
Loans for: education, housing, farm or businesses

Question 5

After WW2, which three countries had to pay loans to the USA? How much were these loans?

Answer 5

Great Britain - $31 billion
France - $3.2 billion
China - $1.6 billion

Question 6

What was The Bretton-Woods System?

Answer 6

A global monetary system devised during a meeting of representatives of 44 allied nations on the 1st July, 1944

Question 7

What two institutions were established as a consequence to The Bretton-Woods System? What was significant about their headquarters?

Answer 7

The International Monetary Fund (IMF)
The World Bank
They were both situated in New York - leading to the new world economic order based around American capitalism and trade

Question 8

What obligation did The Bretton-Woods System introduce?

Answer 8

The 44 allied nations had to adopt a monetary policy which tied their currencies to the US dollar

Question 9

In 1945 then again in 1946, what did Truman demobilise the army to? What did this mean for unemployment?

Answer 9

1945 - Demobilised to only 3 million troops
1946 - Demobilised to just 1.5 million troops
This gradual reintroduction to civilian work meant some short-term unemployment

Question 10

Under the Truman Presidency, what was the statistic for unemployment?

Answer 10

It never went over 5%

Question 11

When was the ‘Consumer Boom’? And how did Truman attempt to combat this? Was it successful?

Answer 11

From 1945-46, inflation had hit 25%
Truman attempts a ‘Price Control Bill’ - watered down by a newly elected Republican Congress

Question 12

What was set up in 1946 to assist the government with the economy? What was also passed in the same year?

Answer 12

The Council of Economic Advisors (CEA)
Employment Bill - committed the country to ‘maximum employment’

Question 13

When was the Baby Boom? What was the consequences of this?

Answer 13

From 1945-50
Unlocked a huge new market for housing and goods - leading to a housing boom + suburban housing sites being developed

Question 14

What were the perks of these new houses built in response to the Baby + Housing Booms?

Answer 14

Larger houses for less money than the city’s

Question 15

What is an example of a suburban housing site built in response to the Baby + Housing Booms?

Answer 15

Levittown in Long Island, New York

Question 16

How much did car sales increase during this Housing Boom?

Answer 16

1946 - $2.1 million
1955 - $7.9 million

Question 17

During the 1946 inflation, which administration did Truman attempt to use to combat it? Was it successful?

Answer 17

Roosevelt’s Office of Price Administration (OPA) - this had controlled price in war times
No - Republican Congress and Conservative Democrats sought a free market and therefore weakened the OPA so much that prices rose spectacularly

Question 18

Why did the 1946 inflation create tension with employers and unions?

Answer 18

Employers wanted to raise prices but keep wages down
Unions wanted pay rises to cope with the inflation

Question 19

Which two events in early 1946 showcased an economic low for Truman?

Answer 19

Jan, 1946 - Strike of 800,000 steelworkers
April, 1946 - Strike of 400,000 miners

Question 20

Which two events in late 1946 showcased an economic high for Truman?

Answer 20

May, 1946 - Railroad workers threatened to strike - Truman responded by threatening to bring the army in - resolved
Nov, 1946 - United Mine Workers strike - Truman won after taking the union to court

Question 21

What was the Taft-Hartley Act?

Answer 21

In 1947, Republicans Robert A. Taft and Fred A. Hartley sough to curtail (reduce) the power of Labour Unions
Unions made no longer compulsory + liable for breaching contract

Question 22

Why did Taft and Hartley push for this Act?

Answer 22

There had been 4985 strikes in 1946 - resulting in 116,000,000 working days lost

Question 23

How did Truman respond to the Taft-Hartley Act?

Answer 23

Despite Truman’s all-out effort to prevent a veto override, Congress overrode his veto with considerable Democratic support

Question 24

What was the Taft-Hartley Act described as? (2 examples)

Answer 24

‘dangerous intrusion on free speech.’ - Truman
‘slave-labour bill.’ - Union Leaders

Question 25

What economic low occurred for Truman in terms of strikes in 1952?

Answer 25

Steel workers began to strike for a pay rise - good bargaining position as steel was needed for Korean War
Truman attempts to exceed his power via seizing control of the steel mills - Supreme Court criticised him
Truman humiliated and strike still went ahead

Question 26

What was the ‘Fair Deal’?

Answer 26

A 21-point programme put forward by Truman in January, 1949
Stated every part of the population had the right to expect a fair deal from the government

Question 27

What were some measures Truman put forward in The Fair Deal? (7 examples)

Answer 27

Federal aid to education
Tax cuts to low-income earners + increase in public housing
Abolition of poll taxes
Permanent FEPC
Anti-lynching laws
Increase of the minimum wage
National health insurance + social security benefits coverage

Question 28

What was the issue with Truman’s Fair Deal compared to Roosevelt’s New Deal? (2 examples)

Answer 28

Truman lacked the fierce nature of Roosevelt
The economic necessity of the Fair Deal wasn’t nearly as bad as the New Deal’s (The Great Depression)

Question 29

Which Fair Deal proposals were successful? (3 examples)

Answer 29

Social Security was extended to an extra million Americans
The minimum wage was raised from 40 cents to 75 cents
Farmers were assisted by measures for soil conservation, flood control and rural electrification

Question 30

What were some social and economic successes under Truman? (5 examples)

Answer 30

By 1953, 62 million Americans were employed (11 million more than 1946)
Poverty reduced - 33% (1949) - 28% (1952)
No bank had failed in 9 years
Social Security benefits had doubled
Inner city slums began to be cleared - ironically made housing worse for African-Americans as replacements were not given fast enough resulting in rents skyrocketing

Question 31

Why did Truman push for Congress to pass the National Housing Act in 1949?

Answer 31

The post-war housing shortage was the worst in American History

Question 32

What did the National Housing Act (1949) set out to do? Did it accomplish this?

Answer 32

Stated that 810,000 federally subsided public housing units will be built for low-income Americans
Only 156,000 poorly constructed units by 1952

Question 33

What was a positive outcome of the National Housing Act (1949)?

Answer 33

It did contribute to a construction boom - as employment increased

Question 34

What other two proposals of Truman’s Fair Deal got rejected?

Answer 34

Federal health care
Education aid

Question 35

What did Truman push in terms of Health care? Was this received well by Congress?

Answer 35

A national health-insurance scheme
Congress attacked it as a tax-raising method and deemed an individual’s health care not the federal government’s job

Question 36

Which other group objected Truman’s health care scheme? What did they describe it as?

Answer 36

The American Medical Association
‘Socialised Medicine’

Question 37

Why wasn’t much done for federal aid to education?

Answer 37

Education was seen as a state matter, rather than a federal issue

Question 38

What legislation did Truman obtain in relation to education?

Answer 38

National School Lunch Act (1946)
Enabled poorer schoolchildren to eat a free/low-cost lunch

Question 39

Why did Truman not obtain much in terms of his ‘Fair Deal’ proposals to Congress? (2 examples)

Answer 39

He needed Congress’ help with the Korean War - had to give up on the Fair Deal for that help
America didn’t want another Roosevelt (revolutionary) - the ‘New Deal’ had done enough for them

Question 40

What was Truman’s approval rating by 1952? Why was this?

Answer 40

22%
An economic scandal the year before
Inflation due to the Korean War

Question 41

What economic scandal hit Truman in 1951?

Answer 41

Dozens of IRS officials were forced to resign over alleged corruption