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Postwar America

Postwar America. Readjustment & Recovery . By summer ‘46, +10 million men & women were released from the armed forces To help ease veterans return to civilian life, Congress passed the Servicemen’s Readjustment Act (GI Bill of Rights)

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Postwar America

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  1. Postwar America

  2. Readjustment & Recovery • By summer ‘46, +10 million men & women were released from the armed forces • To help ease veterans return to civilian life, Congress passed the Servicemen’s Readjustment Act (GI Bill of Rights) • It encouraged vets to get an education by paying part of their tuition • Guaranteed a year of employment benefits & low interest loans

  3. Vets faced a housing crisis • Many families lived in cramped apartments • This led to mass production of houses & suburbs • Divorce rates skyrocketed (ladies makin bank)

  4. After WWII, the US converted from a wartime to a peacetime economy • War contracts were cancelled totaling $35 billion • +1 million defense workers were laid off • Unemployment rose as veterans joined the unemployed

  5. During the war, inflation was controlled by the OPA • After the war, prices shot up 25% • This led to consumers struggling to find common goods (bread, sugar, coffee)

  6. Economists assumed their would be a postwar depression • Didn’t realize consumers had sacrificed many goods for years • By the late ‘40s, Americans had money to spend ($135 billion in savings from defense work, service pay, & investments in war bonds) • The economy boomed as Americans bought cars & houses

  7. Many Americans prospered in “the affluent society” • The demand for goods & services increased production = new jobs • Concern over Soviet expansion kept defense spending high & people employed

  8. Meeting Economic Challenges • Pres. Harry S. Truman had 2 challenges: deal w/ rise of communism & restore the economy • In ‘46, + 4 million workers went on strike for facing higher prices & lower wages • Truman threatened to draft striking workers

  9. Racial violence began to erupt in the South • African Americans (especially vets) demanded their rights • “I am asking for equality of opportunity for all human beings,” “…ad if that ends up in my failure to be reelected, that failure will be in a good cause” • W/ the President’s Commission on Civil Rights, Truman asked Congress to pass a federal anti-lynching law, a ban on the poll tax as a voting requirement, & a permanent civil rights commission

  10. Congress refused to support, so Truman took action • He issued an exec order for the integration of armed forces • He also ordered an end to discrimination in hiring govt employees • The SC ordered that lowered courts couldn’t restrict African Americans from residential neighborhoods

  11. To protest Truman’s emphasis on civil rights, Southern Democrats “Dixiecrats” formed the State’s Rights Democratic Party • The Dixiecrats nominated Gov J. Strom Thurmond of SC • To counter the Dixiecrats & Republican candidate, Thomas Dewey, Truman tried to pass laws supporting public housing, federal aid for education, higher minimum wage, & extended Social Security coverage • He led a whistlestop campaign traveling thru the country, leading to a successful reelection

  12. After victory, Truman proposed the “Fair Deal” • Included proposals for nationwide health insurance & crop subsidies for farmers (both were defeated) • Truman was successful in raising minimum wage from 40 to 75 cents • Congress also extended Social Security coverage to 10 million more people & initiated flood control & irrigation projects • Financial support was given to cities to clear out slums & build housing units for low income families

  13. Republicans Take Middle Road • Despite social & economic victories, Truman’s approval rating was low • With McCarthyism rising & the stalemate in the Korean War, Truman decided not to run for reelection • Democrats nominated Gov Adlai Stevenson, Republicans nominated Gen Dwight D. Eisenhower “Ike” • Rep. accused Dems of killing the economy & struggling abroad • They also highlighted the rise of Communism in China & Eastern Europe

  14. Reps criticized the growing power of the federal govt & bribery & corruption under Truman • Eisenhower’s style differed from the Dems • He wanted govt to be conservative w/ money & liberal w/ people • Ike avoided many controversial topics

  15. Eisenhower struggled w/ sidestepping the Civil Rights issues • During his presidency, Brown v. Board of Ed was passed & the Rosa Parks incident occurred • Ike pressed hard for balanced budget & tax cuts • Minimum wage was raised during his presidency, unemployment benefits were extended, the Depts of Health, Education, & Welfare were all created • He was easily reelected in ‘56

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