WWII Memorial Washington DCWWII Memorial Washington DC

America’s Transformation

Wartime EconomyTo

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 ProgramPass a National Housing Program– Extend Social Security BenefitsExtend Social Security Benefits– Raise Minimum WageRaise Minimum Wage– Pass a FULL Employment Bill.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)– Truman waivered in his promise by passing the

Employment Act of 1946:Employment Act of 1946:• Called for “Maximum Employment” not full employmentCalled for “Maximum Employment” not full employment• Stated the government would be responsible for Stated the government would be responsible for

maintaining prosperity….maintaining prosperity….but never said how it would but never said how it would achieve it.achieve it.

Employment Act of 1946: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:The Economy remained solid because:

1. The GI Bill provided low-interest loans2. 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: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 But LOSESLOSES the Congress in 1946 the Congress in 1946

80th Congressional Election

• Truman inherited the problems of the country less than a year before the 80th Congressional Election.– He (and the democratic party) was taking the fall

for shortages an inflationshortages an inflation

• Congressional Election of 1946 resulted in both Congressional Election of 1946 resulted in both houses of Congress being majority Republicanhouses of Congress being majority Republican– (Truman was a Democrat)(Truman was a Democrat)

80th Congressional Election

• Prominent Political Figures who were elected to Congress in 1946

• 1. Richard Nixon Richard Nixon (37th President)• 2. John F. Kennedy John F. Kennedy (35th President)• 3. Joe McCarthy Joe McCarthy (Lead the Communist in

government investigations)• First order of business for the Republican

Congress was the 22nd Amendment (limiting the number of presidential terms.

80th Congressional Election• Senator Robert Taft started to stir up issues in

the hopes he could gain a creditable record to help him become president some day.

• (He never was able to win his party’s nomination)

• He helped push the Labor Management Labor Management Relations Act:Relations Act:– AKA the Taft-Hartley ActAKA the Taft-Hartley Act– Goal was to curb the power Goal was to curb the power of labor unionsof labor unions

Senator Robert Taft

Taft-Hartley ActTaft-Hartley Act

• Enacted in 1947• Extended unfair labor practices would now

apply to unions1. 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 ActTaft-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. (Made certain strikes illegal)– This helped allow for federal mediators to try to

settle the strike before hand.

Taft-Hartley ActTaft-Hartley Act

• Unions were not happy about this.• Felt it was an attack against organized labor &

unionization.• The Taft-Hartley Act was never repealed.

– But other acts have amended part of it.

• 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.• 1962 became the 1st black player to be

inducted into the Hall of Fame.• YouTube - Jackie Robinson: A Life Story

Civil Rights in the late 1940’s

• In 1946 Truman created the Committee on Committee on Civil Rights.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– Institute a permanent FEPCFEPC (Fair Employment

Practices Committee)– No positive legislation came of this because

Congress basically ignored it’s efforts.

Civil Rights in the late 1940’s

• 1948 after Truman saw that not much was being done he issued an Executive Order Executive Order to require desegregation of the military. – (and so it was done)(and so it was done)