26.1 An Economic Boom

An Economic Boom Prediction: American economy would plummet. Instead of depression Americans experienced the longest period of economic growth in American history.

The Nation Recovers from War End of war 1945: 12 million Americans in military Overnight both need for military and focus on war production came to an end. Wartime industries had to converted to meet peacetime needs. Demobilization

GI Bill Aids Returning Soldiers GI Bill of Rights The Readjustment Benefits Act of 1966 extended these benefits to all veterans of the armed forces, including those who had served during peacetime. The G.I. bill, officially the Servicemen's Readjustment Act of 1944, provided many benefits to veterans of World War II. Eight million veteran eventually took advantage of the education benefits.

A Baby Boom Fills Classrooms One American baby was born every 7 seconds, a grand total of 4.3 million for the year. 1940-1955 the U.S. population experienced its greatest increase growing 27 %.

Converting From a Wartime Economy Skyrocketing prices Postwar rush to buy goods created severe inflationary pressures.

The U.S. Dominates the World Economy Economy improved during war but wartime restrictions kept spending down and limited economic growth. End of wartime restrictions finally opened the floodgates to consumer purchases. Cycle of people buying new goods, leading businesses to hire more workers who in turn bought more goods.

Technological Progress Boosts Productivity Example of technological advances was the use of atomic energy.

Government Spending Supports Growth Military spending=new development of technologies and materials such asplastics and new light metal alloys.

Truman Overcomes Huge Obstacles Beginning of Cold War and communist takeovers in Europe and Asia. At home there was inflation and labor unrest.

Grappling With Congress and Labor Truman double barreled challenge: a restless labor movement and a combative Republican Party. Taft Hartley Act: law that outlawed the closed shop a workplace in which only union members can be hired. Truman vetoed the Taft Hartley Act and Congress overrode his veto.

Angering Segregationists Truman established a special committee on civil rights to investigate race relations. Made several recommendations for civil rights reforms. Congress rejected the recommendations and did not pass any meaningful civil rights reforms until the late 1950s. Truman issued order desegregating the military.

Truman Upsets Dewey Trumans standing sunk. Southern democrats angered at his support for Civil Rights, left the party and established the States Rights Party. Thurmond as their candidate for President Wallace became candidate for new Progressive party. Republican Partys nomination of Thomas Dewey the well known governor of New York for President Truman did his “whistle stop” train tour of the nation and won by slim margin.

Truman Proposes a Fair Deal The Fair Deal was an ambitious set of proposals put forward by U.S. President Harry S. Truman to Congress in his January 1949 State of the Union address. More generally the term characterizes the entire domestic agenda of the Truman administration, from 1945 to 1953.

Eisenhower Charts a Middle Path Republican candidate Eisenhower was so popular with Dems and Rep parties had wanted him as their presidential candidate . Dem candidate Stevenson failed to catch the popular imagination as Ike had. Most Americans believed Ike would keep to the “middle of the road” achieving balance between liberal and conservative positions.