Early Cold War Politics Chapter 28, Lesson #2

The Peacetime Economy Adjustment to peacetime economy was difficult  During war:  Price and wage limits  After war:  Back to regular manufacturing  No more limits  Returning soldiers needed jobs  Inflation:  Prices went up  Wages did not  1946: Railroad and mine workers went on strike  Truman threatened to draft them all!

Republican Congress By 1946: Many Americans blamed Truman Democrats for problems  Election 1946:  Republicans won both houses of Congress  Wanted to limit:  Gov’t spending  Power of labor unions  Taft-Hartley Act:  Outlawed “closed shop” businesses  Gov’t could stop any strike that threatened health or safety  Truman tried to veto  Congress overrode veto

Government Reorganization Both Truman and Republicans agreed gov’t got too big during the war.  Needed to be reorganized: 1947: National Security Act:  Combined all armed services under the Dept. of Defense  National Security Council: advise president on foreign and military matters  Created the CIA (Central Intelligence Agency)

The Election of 1948 Truman up for reelection  Economy made Truman look bad  Congress made Truman look weak  Many didn’t like how Truman wanted civil rights changes Republican Governor, Thomas Dewey of New York, expected to win.  Even some newspapers reported that he won Truman pulls an upset!  Won election by 2 million votes  Democrats took back Congress

Truman’s Fair Deal Fair Deal (1948):  Raised minimum wages  Expanded social security  Low-income housing  Federal agencies to end discrimination  Desegregated the military  Justice Dept. to enforce civil rights laws