AN ECONOMIC BOOM 17.1

The Nation Recovers from War August 1945 – 12 million Americans in the military Millions more in industrial jobs Overnight became unneeded, return to amounts for peacetime need Truman demobilized the military July 1946 – 3 million Americans in military Many soldiers worried about postwar unemployment

The GI Bill Aids Returning Soldiers GI Bill of Rights = Benefits to veterans Unemployment pay, financial aid for college, gov’t loans for building houses + businesses Huge impact on society! Upsurge in home construction 8 million used education aid Return to or enter college, room and board assistance as well

The Baby Boom Many soldiers married + had children upon return Those already married also made up for lost time Confident that Great Dep behind them married couples could now afford to have children And they had LOTS 1 baby every 7 seconds in 1957 (peak of baby boom) = 4.3 million babies that year % increase in population (greatest ever) 130 million to 165 million = huge demand on goods

The Baby Boom

Converting From a Wartime Economy Prices skyrocketed after WWII Gov’t ended rationing/price controls that kept inflation in check during the war After the war ppl rushed to buy goods = creates inflation, prices rose 18% on average in 1946

The U.S. Dominates the World Economy During Great Dep + the war Americans could not buy all the goods they wanted ∴ after WWII there was a huge increase in consumer purchases Increase in demand = more jobs = more ppl w/ $ = more buying = economic boom! U.S. had only 6% of world’s population but produced 50% of world’s total output Created the highest standard of living in the world

Technological Progress Boosts Productivity New research in technology and computers led to an increase in worker productivity: The rate at which goods are produced/ services performed This helped stimulate the economy by creating new markets + jobs!

Government Spending Supports Growth Government spending boosted the economy: Korean War Marshall Plan Increased foreign demand for U.S. goods Military spending during WWII = New tech like plastics + light metals that ppl could use in everyday life

Truman Overcomes Huge Obstacles Eleanor Roosevelt “Is there anything we can do for you?” Truman’s presidency started at a very difficult time in American history Labor unrest w/ returning vets Cold War/Communist threats Inflation

Grappling with Congress and Labor The issue: Restless labor mvm’t vs a combative Republican Party in Congress Workers demanded higher wages to keep up w/ inflation, went on strike demands unmet

Grappling with Congress and Labor HUGE wave of strikes in post WWII America ∴ Congress passed the Taft-Hartley Act Outlawed the “closed shop” (workplace where only union members could be hired) Truman vetoed but Congress overrode Lost some of the gains of the New Deal Why would Congress outlaw the “closed shop?”

Angering Segregationists FDR feared angering Southern congressman Truman didn’t ∴ he established a special committee on civil rights and race relations Congress rejected the recommendations of the committee Little impact until late 1950s Truman used an executive order (9981) to integrate the military Almost fully integrated by 1951

Election of 1948 Southern Democrats angry at Truman for supporting civil rights ∴ they created their own party, States’ Rights Party Strom Thurmond as their candidate Henry Wallace broke away, ran as Progressive Party candidate Republicans nominated Thomas Dewey (NY gov)

Truman Upsets Dewey Few ppl thought Truman had a chance Especially since Dem Party was so divided Truman fought hard w/his “Whistle Stop” campaign 300 speeches, traveling 31,000 miles to rile up the ppl Won by a narrow margin!

Election of 1948

Truman Proposes a Fair Deal After elected Truman introduced a legislative program: the Fair Deal Strengthen New Deal reforms Establish national health insurance Congress shot most all of it down Truman did not go up for reelection in 1952… Was looked at unfavorably back then, but now in a much better light

Election of 1952 Republican candidate Dwight D. Eisenhower was a favorite among Dems. and Reps. Adlai Stevenson (Dem. candidate)

VP Nixon and the Checkers Speech Reporters found that Nixon had $18,000 worth of political gifts from supports. At the time it wasn’t illegal Is it today? Nixon goes on television and defends his actions.

Eisenhower Charts a Fair Path Ike was charming and well known from WWII Calm personality = ppl thought he would be middle of the road in politics In fact he was! Kept the New Deal reforms but did work to decrease the size of gov’t Strong American economy made many like him

Post War Boom