US Economy under Truman Flashcards
What was their concern in terms of employment following Japan’s surrender in 1945?
It would meant 12 million veterans would return home + seek employment
How did Truman respond to the employment concern for the veterans? (2 examples)
1944 - GI Bill of Rights (Roosevelt’s but continued by Truman)
1945 - Employment Act (‘to use all practical use’ to foster ‘maximum employment’)
How much money did the GI Bill of Rights distribute to how many veterans?
It distributed $20 billion to 7.8 million veterans
What else did the GI Bill of Rights give returning veterans? (2 examples)
52 weeks’ unemployment pay
Loans for: education, housing, farm or businesses
After WW2, which three countries had to pay loans to the USA? How much were these loans?
Great Britain - $31 billion
France - $3.2 billion
China - $1.6 billion
What was The Bretton-Woods System?
A global monetary system devised during a meeting of representatives of 44 allied nations on the 1st July, 1944
What two institutions were established as a consequence to The Bretton-Woods System? What was significant about their headquarters?
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
What obligation did The Bretton-Woods System introduce?
The 44 allied nations had to adopt a monetary policy which tied their currencies to the US dollar
In 1945 then again in 1946, what did Truman demobilise the army to? What did this mean for unemployment?
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
Under the Truman Presidency, what was the statistic for unemployment?
It never went over 5%
When was the ‘Consumer Boom’? And how did Truman attempt to combat this? Was it successful?
From 1945-46, inflation had hit 25%
Truman attempts a ‘Price Control Bill’ - watered down by a newly elected Republican Congress
What was set up in 1946 to assist the government with the economy? What was also passed in the same year?
The Council of Economic Advisors (CEA)
Employment Bill - committed the country to ‘maximum employment’
When was the Baby Boom? What was the consequences of this?
From 1945-50
Unlocked a huge new market for housing and goods - leading to a housing boom + suburban housing sites being developed
What were the perks of these new houses built in response to the Baby + Housing Booms?
Larger houses for less money than the city’s
What is an example of a suburban housing site built in response to the Baby + Housing Booms?
Levittown in Long Island, New York
How much did car sales increase during this Housing Boom?
1946 - $2.1 million
1955 - $7.9 million
During the 1946 inflation, which administration did Truman attempt to use to combat it? Was it successful?
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
Why did the 1946 inflation create tension with employers and unions?
Employers wanted to raise prices but keep wages down
Unions wanted pay rises to cope with the inflation
Which two events in early 1946 showcased an economic low for Truman?
Jan, 1946 - Strike of 800,000 steelworkers
April, 1946 - Strike of 400,000 miners
Which two strikes in late 1946 showcased an economic high for Truman?
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
What was the Taft-Hartley Act?
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
Why did Taft and Hartley push for this Act?
There had been 4985 strikes in 1946 - resulting in 116,000,000 working days lost
How did Truman respond to the Taft-Hartley Act?
Despite Truman’s all-out effort to prevent a veto override, Congress overrode his veto with considerable Democratic support
What was the Taft-Hartley Act described as? (2 examples)
‘dangerous intrusion on free speech.’ - Truman
‘slave-labour bill.’ - Union Leaders
