Section 2: Post War Politics The Truman Administration pushed for economic and social reform

Key terms: inflation, closed shop What economic problems did Americans face after WWII and how did Pres. Truman’s Administration try to solve them?

THE POST WAR ECONOMY  After WWII the economy had to adjust and industries shifted from producing war materials to consumer goods.  During the war price controls kept prices stable and workers accepted government controls on wages and agreed not to strike. Without price control the prices on goods began to surge (rise). Also labor unions began to strike again when employers refused to raise wages.  What did Truman do to force workers back to work?

TRUMAN FACES THE REPUBLICANS In 1945 President Truman, a Democrat, presented Congress with a plan of returns to solve some of the economic problems. This plan was called the Fair Deal. The Fair Deal would: –Raise the minimum wages –Expand Social Security benefits –Increase federal spending to create jobs –Build new public housing –Create a system of national health insurance

REPUBLICANS CONTROL CONGRESS In the Congressional elections in 1946 the slogan “Had Enough” helped Republicans win both houses of Congress. Many Americans blamed the Democratic Party for the Nation’s economic problems. In 1947, Congress introduced the Taft-Hartley Bill which limited the actions workers could take against their employers. It outlawed the closed shop, a workplace that hires only union members. It also allowed the government to temporarily stop any strike that would endanger public health or safety. Truman vetoed the act but Congress overrode his veto.

LAND MARK LEGISLATION With roughly eight million citizens in uniform in 1945 and 22 million involved in war production, the GI Bill helped guide a wartime economy smoothly back into a peacetime economy. The GI Bill made it possible for millions of GIs to go to college or receive special training to set up businesses or buy homes. It also provided unemployment and health benefits for GIs as they looked for jobs.

EXPENSES FOR ONE GI FAMILY Rent ($25.00 per month)$ Utilities Food ($10.00 week) Bank Loans Furniture Payment Clothes Baby Doctor Recreation Life Insurance One Year Total$1,571.00

GOVERNMENT RE-ORGANIZATION In 1947 Congress passed the National Security Act. It unified Army, Navy, Marines and Air Force under the Department of Defense. It set up a permanent Chiefs of Staff operating out of the White House to coordinate Military policy to advise the President on foreign and military matters. It set up the Central Intelligence Agency (CIA). It was their duty to collect information about other countries, evaluate it and pass it on to the President.

THE ELECTION OF 1948 Truman faces Thomas Dewey in the 1948 election. Truman (Democratic candidate) appeared to be the underdog against Thomas Dewey (Republican candidate). Economic problems made Truman unpopular with many Americans Lack of success in getting his reforms passed made his administration look weak and efficient. Division in Democratic Party Southern Democrats formed Dixiecrats and nominated Governor Strom Thurmond Liberal members of the Democrat Party formed the Progressive Party and nominated Henry Wallace. Truman goes on a whistle-stop tour some 30,000 miles across the Country making over 250 speeches from town to town by train. He attacks Congress calling them do-nothing good for nothing worst Congress for rejecting his Fair Deal Legislation. The Chicago Daily Tribune Newspapers expectation for a Republican victory printed a special issue “Dewey Defeats Truman.

When all ballots were counted Truman edged out Dewey by two million votes Truman quickly re-introduces the Fair Deal legislation to Congress. Some of the reforms passed but not all of them. –Laws passed to raise the minimum wage –Expand Social Security benefits to Senior citizens –Provide funds for housing for low-income families.

A STAND ON CIVIL RIGHTS Truman takes serious steps to advance the Civil Rights of African Americans. Ordered federal agencies to end job discriminations Ordered the Armed Forces to desegregate to end separation of races Asked for clearance of slums, government backed medical insurance, higher minimum wages, more money for federal schools, many of these proposals were not passed. It was an important step toward improving the lives of millions of Americans.