WWII Memorial Washington DC

America’s Transformation Wartime Economy To Peacetime Economy

Truman’s Home Troubles Truman inherited the presidency. People loved Roosevelt (him not so much) His biggest task was to transform the economy from Wartime Economy to Peacetime economy. He also had the task of dismantling the military to a peacetime military. – This would bring an influx of servicemen into the private sector all wanting jobs. (after all they did just help defend our nation)

Dismantling the Armed Forces Truman quickly dismantled the armed forces. – Ones that were left overseas began rioting and causing trouble. Truman also canceled the draft. – We went from 12 million troops to 1.5 million in approximately a year. – Military spending would still be in effect though (Arms race)

Truman’s Economic Plan Roosevelt promised the nation jobs, housing, health care and a good education (helped him get reelected) – Truman wanted to continue with that plan. In late 1945 Truman asked congress to: – Pass a National Housing Program – Extend Social Security Benefits – Raise Minimum Wage – Pass a FULL Employment Bill.

Truman’s Economic Plan The cornerstone was the “Full Employment” – Americans feared massive unemployment in peacetime (no war contracts to fulfill) Employment Act of 1946: – Truman waivered in his promise by passing the Employment Act of 1946: Called for “Maximum Employment” not full employment Called for “Maximum Employment” not full employment Stated the government would be responsible for maintaining prosperity….but never said how it would achieve it. Stated the government would be responsible for maintaining prosperity….but never said how it would achieve it.

Employment Act of 1946: It also created the Council of Economic Advisers. – They would advise the president on long range economic planning. – Economists were very important. – Presidential campaigns since have all started with the promise of growth. Read Growth in your book (pg. 57)

Truman’s Economy Following the war the Economy shrank. – Lost $35 Billion in war contracts – Unemployment rose to 4.5% – However depression didn’t occur! – USA was one of the only countries to survive a post-war economy.

The Economy remained solid because: 1.The GI Bill provided low-interest loans 2.It gave educational benefits (vets attended college and trade schools) 3.Truman cut taxes which put more money into people’s hands THUS they spent more increasing the flow of $ in our economy. 4.People had money from working during the war and now had a chance to spend it on consumer goods….and spend it they did!

Demand causes Problems With the skyrocket in consumer demand inflation rose drastically. – Inflation: Persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency Prices rose but wage restrictions from the war remained. This lead to a series of strikes around the country.

Truman wins Presidency in 1945 But LOSES the Congress in 1946

80 th Congressional Election Truman inherited the problems of the country less than a year before the 80 th Congressional Election. shortages an inflation – He (and the democratic party) was taking the fall for shortages an inflation Congressional Election of 1946 resulted in both houses of Congress being majority Republican Congressional Election of 1946 resulted in both houses of Congress being majority Republican – (Truman was a Democrat)

80 th Congressional Election Prominent Political Figures who were elected to Congress in 1946 Richard Nixon 1. Richard Nixon (37 th President) John F. Kennedy 2. John F. Kennedy (35 th President) Joe McCarthy 3. Joe McCarthy (Lead the Communist in government investigations) First order of business for the Republican Congress was the 22 nd Amendment (limiting the number of presidential terms.

80 th Congressional Election Senator Robert Taft started to stir up issues in the hopes he could gain a creditable record to help him eventually win the White House. Labor Management Relations Act: He helped push the Labor Management Relations Act: – AKA the Taft-Hartley Act Senator Robert Taft

Taft-Hartley Act Enacted in 1947 Extended unfair labor practices would now apply to unions 1. Unions couldn’t have a “Closed Shop” Meaning you couldn’t be forced to join a union. 2. Required Union Leaders to file annual financial statements This was done to ensure no union leaders were supporting any communist sympathizing organizations

Taft-Hartley Act Extended unfair labor practices would now apply to unions 3. Unions were not permitted to donate $$ to National Political Campaigns. – This was done to help lessen the political corruption 4. It required an 80 day notice prior to strikes by Federal Employees. – This helped allow for federal mediators to try to settle the strike before hand.

Taft-Hartley Act Unions were not happy about this. Felt it was an attack against organized labor & unionization. The Taft-Hartley Act was never repealed. Labor Unions continued and increased in size. With the agreements made between labor unions and management in the 1950’s, laborers became some of the most wealthy people of the time.

Civil Rights in the late 1940’s African-Americans had hoped for the “Double V” African-Americans didn’t have a lot of support. – Over 95% of African Americans worked for white people. – Some gained voting privileges but with restrictions. – Most didn’t want to vote though because of the potential backlash from voting.

Voting Day Issues for African Americans: Literacy Exams Potential to lose your job for voting Loss of insurance policies Evicted from housing Loss of credit (financial credit problems) Poll Taxes Ridiculous qualifications to be able to vote – Must own property in a particular area/or size – Must have specific amount of $

Jackie Robinson 1947 Brooklyn Dodgers GM Branch Rickey signed Jackie Robinson to their roster. He became Rookie of the Year 2 years later (1949) he was selected the N.L. MVP became the 1 st black player to be inducted into the Hall of Fame. YouTube - Jackie Robinson: A Life Story

Civil Rights in the late 1940’s Committee on Civil Rights. In 1946 Truman created the Committee on Civil Rights. – It’s goal was to Eliminate the Poll tax – Create a civil rights division in the Justice Dept. – Desegregate the military and government agencies FEPC – Institute a permanent FEPC (Fair Employment Practices Committee) – No positive legislation came of this because Congress basically ignored it’s efforts.

Civil Rights in the late 1940’s Executive Order 1948 after Truman saw that not much was being done he issued an Executive Order to require desegregation of the military. – (and so it was done)

Election of 1948 Dixiecrats: Dixiecrats: – A southern democrats who formed their own party because they didn’t support Truman. – Pushed for S.C. Governor Strom Thurmond as their presidential candidate. We stand for the segregation of the races” – Their single issue….”We stand for the segregation of the races” Henry Wallace (D)– Henry Wallace (D)– Was a presidential candidate of a 3 rd leftist party. Thomas Dewey (R) Thomas Dewey (R) was Republican candidate.

Election of 1948 Wallace Many thought Wallace would cost Truman the election because he was the “true” heir to Roosevelt's presidency. Dewey Dewey was confident he would win. He didn’t campaign hard. Didn’t raise controversial issues etc. Truman decided to go on a “whistle-stop” tour across the country.

Election of 1948 Truman on this tour emphasized the “New Deal” and bashed the 80 th congress calling them.. – Do nothingers – Good for nothing – Gluttons of privilege – People who will kill the New Deal programs “Give em Hell Harry”—I’m doing it. Most thought Truman had no shot at victory. – They actually stopped doing early polling to find an early winner.

Election of 1948 Truman then pulled off one of the biggest upsets in American election history. Truman won the presidency and the Democrats took over control of Congress again. – Many said they didn’t want to vote for a “throwaway” candidate and waste their vote. One of the 1 st times party voting took a backseat to “issue voting” in a presidential election.