US Economy under Truman Flashcards
Why 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 events 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
What economic low occurred for Truman in terms of strikes in 1952?
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
What was the ‘Fair Deal’?
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
What were some measures Truman put forward in The Fair Deal? (7 examples)
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
What was the issue with Truman’s Fair Deal compared to Roosevelt’s New Deal? (2 examples)
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)
Which Fair Deal proposals were successful? (3 examples)
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
What were some social and economic successes under Truman? (5 examples)
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
Why did Truman push for Congress to pass the National Housing Act in 1949?
The post-war housing shortage was the worst in American History
What did the National Housing Act (1949) set out to do? Did it accomplish this?
Stated that 810,000 federally subsided public housing units will be built for low-income Americans
Only 156,000 poorly constructed units by 1952
What was a positive outcome of the National Housing Act (1949)?
It did contribute to a construction boom - as employment increased
What other two proposals of Truman’s Fair Deal got rejected?
Federal health care
Education aid
What did Truman push in terms of Health care? Was this received well by Congress?
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
Which other group objected Truman’s health care scheme? What did they describe it as?
The American Medical Association
‘Socialised Medicine’
Why wasn’t much done for federal aid to education?
Education was seen as a state matter, rather than a federal issue
What legislation did Truman obtain in relation to education?
National School Lunch Act (1946)
Enabled poorer schoolchildren to eat a free/low-cost lunch
Why did Truman not obtain much in terms of his ‘Fair Deal’ proposals to Congress? (2 examples)
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
What was Truman’s approval rating by 1952? Why was this?
22%
An economic scandal the year before
Inflation due to the Korean War
What economic scandal hit Truman in 1951?
Dozens of IRS officials were forced to resign over alleged corruption
