After WWII, the US economy experienced rapid changes as industry shifted to peacetime production and millions of veterans returned home. The GI Bill provided benefits that led to a housing and education boom. At the same time, rising consumer demand caused inflation as postwar economic dominance led to high wages and standards of living. However, reconversion brought unemployment that unions tried to counter through strikes despite restrictions from the Taft-Hartley Act. Truman pushed for civil rights reforms that were blocked by Congress amidst tensions over foreign and domestic policy challenges.
2. Focus Question: How did
Social and economic changes
after WWII affect Americans
3. Recovering from war
• War end = Many Defense Workers out of a job
• Industry had to meet Peace Time Standards
• Demobilization – soldiers and sailors return home (July
1946 – 3,000,000 total in armed forces)
• Soldiers return home = need many jobs
• G.I Bill of Rights – Variety of Benefits: 1 year
Unemployment pay, Financial Aid (College), Loans for
homes/businesse
• Home Construction BOOMS and 8 Million Vets go to
college
• BABY BOOM – 1957- 4.3 Million Babies Born (Greatest
American Population Increase in History (27% Increase)
4. Peace Time Economy
• Consumer Buying Increases = PRICES SKY ROCKET (by 18%)
• “
“ = Inflation (too much money to
spend on not enough goods)
• US DOMINATES WORLD ECONOMY
• America counted for 6% of World Population but accounted
for 50% of all goods/trade (Highest standard of living in the
world…..Versace!!!)
• Technology = Productivity (computers)
• Government Spending = Growth
• Korean War = $ for Defense Department = Jobs
• Marshall Plan = Increased foreign need for US
products/goods
• http://www.youtube.com/watch?v=Gmka2mydsD0
5. Truman overcomes huge obstacles
• Congress and Labor
• Unions Demand increased wages = Employers Refuse =
Millions Strike
• Taft-Hartley Act – law that restricted the power of Unions
resulting from Waves of Strikes (Congress overturned
Truman’s initial Veto)
• http://www.youtube.com/watch?v=ZJZvlCRxYHI
• Segregation
• Truman establishes Civil Rights Committee (time for a
change!)
• Congress rejects proposals
• Truman Desegregates the Military
6. Obstacles Continued
• Truman upsets Dewey
• Democrats upset at attempts at Civil Rights
Reform/Republicans upset in General
• Truman wins re-election bc of famous “whistle stop tour”
• http://www.youtube.com/watch?v=VEPH162n3r8
• Truman Proposes THE FAIR DEAL
• Intended to strengthen NEW DEAL programs
• Congress shot down most of the reforms
• Truman’s Legislative woes + stalling action during THE
KOREAN WAR = no re-election in 1952 (Eisenhower Won 52’
Election)
7. Eisenhower charts a middle path
• 1952 Election – Dominating victory for Eisenhower
(WWII Hero)
• Wanted to balance between Liberal and Conservatives
Parties
• He believed the Fed. Govt. had become too powerful
but did not repeal any of the NEW DEAL programs
(FDR) such as Social Security and Minimum Wage
• Began Federal Highway System (I-4) and federal
spending on Education
• Eisenhower’s Presidency = Economic Prosperity and
Peace (very popular in History)
