What did Truman do to affect the US economy?

Question 1

GI Bill

Answer 1

• 1944
• introduced by FDR
• ex-service men given 52 weeks unemployment pay
• distributed $20B to 7.8M veterans 1945-46

Question 2

Reduction in the army

Answer 2

• 1945, end of WW2
• ‘No boats, No votes’
• reduction of army from 12-3M (1945-46)
• led to short term unemployment

Question 3

Reprivatisation of industry

Answer 3

• 1945, end of WW2
• high demand for domestic goods fuelled by returning soldiers
• led to 25% inflation 1945-46
• plants quickly retuned to peacetime production

Question 4

Federal Housing Agency

Answer 4

• 1945, end of WW2
• Truman wanted to provide hosing for returning soldiers
• the agency would provide gov backed mortgages at good rates
• unable to get any money from Congress

Question 5

Inflation and the Office of Price Administration

Answer 5

• 1945-46
• inflation risen in aftermath of WW2 due to large demand of goods
• Truman proposed a price control bill
• bill watered down by Congress (republican)

Question 6

Hospital survey and Construction Act

Answer 6

• 1946
• federal programme to offer financial assistance for the modernization and construction of hospitals
• can to seen to aid the building industry more than the medical industry

Question 7

Council of economic advisors

Answer 7

• February, 1946
• Truman created a group of advisors to give him economic advice
• the council could recommend gov action

Question 8

Employment Act

Answer 8

• February, 1946
• Tuman hoped that the act would demand ‘full’ employment
• Congress passed the act which gave a commitment to ‘maximum’ employment

Question 9

Coal and railway workers strike

Answer 9

• April, 1946
• strike began involving 400,000 miners
• Truman asked Congress to use troops and even enrol strikers as soldiers
• Congress obviously refused!!!

Question 10

Taft-Hartley Act

Answer 10

• 1947
• passed by the Republican Congress (won the 1945 mid-term election)
• curbed union power
• Truman vetoed
• Congress overread the veto

Question 11

Marshall Plan

Answer 11

• June, 1947
• Truman proposed help Europe recover after WW2 and stave off Communism
• created a captive market for US goods
• Congress granted $17B over 4 years to be distributed to participating countries

Question 12

Fair Labour Standards Act

Answer 12

• 1949
• increased minimum wage from 40-75 cents an hour
• 40 cents an hour was set by the 1938 Fair Labour Standards Act (during FDR’s presidency)

Question 13

Housing Act

Answer 13

• 1949
• returning soldiers + baby boom = huge pressure on housing
• people in Chicago bought street cars to live in
• 810,000 federally subsidised houses should be built for low income Americans
• only 156,000 built by 1952

Question 14

National science foundation Act

Answer 14

• 1950
• encouraged scientific research
• motivated by the cold war
• was a boost to education

Question 15

Steel workers and Executive Order 10340

Answer 15

• April, 1952
• strike was threatened due to increase in steel production (Korean War)
• EO 10340, seized control of steel mills
• Supreme Court agreed that the mills should be privatised
• 7 week strike followed
• resulted in shortages of steel and higher prices