The Postwar Boom-Chapter 19
Vocabulary
1. Suburb: Residential town or community near a city
2. Dixiecrat: Southern Democrat who left the Democratic Party
3. Fair Deal: President Truman’s economic and social program
Notes:
19.1 Postwar America
Readjustment and Recovery
 The GI Bill: (1944) to help ease the Veterans return to civilian life.
o It helped with their tuition
o Guaranteed the a year’s worth of unemployment while looking for work
o Also offered low interest federally guaranteed loans
o Many Veterans used these loans to buy homes, farms, and start businesses
 Housing Crisis
o 1945 and 1946, Veterans who were returning from war faced a severe housing shortage
o Many moved in with relatives or cramped apartments
o Developers like William Levitt and Henry Kaiser used efficient assembly lines to build
homes at a rapid pace
o They developed small communities outside of cities called Suburbs for less than $7,000
o They were standardized houses all looking the same
o 1st Suburb was built in Long Island, NY named Levitt Town
o Many Veterans moved in and cultivated a new lifestyle
 Redefining The Family
o The war caused tensions between men and women because of their roles and led to a
high postwar divorce rate
o Traditionally men were the breadwinners and heads of the households, while women
were expected to stay home and take care of the family
o The war allowed women to work and make important life decisions (8mil women
worked, 75% were married)
o Many women were reluctant to give up their new found independence
o Although most women did leave their jobs, by 1950 more than a million war marriages
had still ended in divorce
 Economic Readjustment
o The US had to convert a Wartime to Peacetime Economy
o After the surrender of Japan many companies lost their wartime contracts and had to
lay off employees ($35 billion, and million employees)
o At the peak of postwar unemployment 3million were seeking work
o
The Office of Price Administration that fought inflation froze prices by setting a max
price, ended on June 30, 1946 causing prices to skyrocket
o Prices continued to rise for the next two years
o While prices soared, Many Americans were making less than they had during the war
o Congress took control of the peacetime economy by establishing controls similar to the
wartime economy. (prices, wages, and rent)
 Remarkable Recovery
o Consumers had been saving throughout the war and had many needs and wants (>$135
billion saved from defense work, service-pay, and investments in war bonds.
o They began to recover from the initial Postwar economic downturn, which led to the
readjustment
o Americans bought automobiles and houses, along with many other goods causing the
economy to boom
o The demand for goods exceed the supply and increased production, which created new
jobs
o Many Americans prospered during the 1950s and earned the title, “Affluent Society.”
o The Cold War concerns caused Defense spending to be high and employed many people
o Foreign aid programs like the Marshall Plan allowed for new foreign markets
Meeting Economic Challenges
 Presidents Truman’s Inheritance
o He was viewed as an honorable, down-to-earth, and self-confident
o Most importantly he had the ability to make the tough decisions
o He faced two threats: Communism and restoring the American Economy
 Truman faces Strikes
o 1st economic problem he had to address was strikes
o because of the higher prices and lower wages many went on strike
o Including steelworkers, coalminers, and railroad workers.
o Truman was usually in favor of the labor Unions, but did not want these strikes to
cripple the nation
o He threatened to draft striking workers and even went to congress to ask for the
authority to do so, but before he finished his speech the unions gave in
 “Had Enough?”
o This was a question that the Republicans asked the American People
o Because of the shortage of goods, rising inflation, and labor strikes
o The voters voted in the congressional elections favoring the republicans allowing them
to take the majority in both houses demonstrating that they wanted change
o Congress ignored Truman’s domestic proposals and passed the Taft-Hartley Act over
Truman’s veto
o This overturned many rights won by the unions during the New Deal
Social Unrest Persists
 Truman supports Civil Rights
o Truman was willing to risk his Presidency in favor of Civil Rights
o He wanted equality of opportunity for all human beings
o He asked congress for several measures including anti-lynching laws, a ban on poll
taxes as a voting requirement, and a permanent civil rights commission.
o Congress refused to pass these measures, or a measure to integrate the armed forces
o In July 1948, he issued an executive order for integration of the Armed Forces
o He also ordered the end to discrimination in the hiring process of Government
employees
o Also, lower courts could not bar African Americans from residential neighborhoods
o These actions represented the beginnings of a federal commitment to dealing with
racial issues
 The 1948 Election
o Everyone blamed Truman for the nation’s inflation and labor unrest
o Because of Truman’s emphasis on civil rights some broke away from the Democratic
party to form the Dixicrats
o They nominated their own presidential candidate, Governor J. Storm Thurmond
o Also, the former VP Henry Wallace formed his own left Liberal Progressive party
o Truman called Congress into a special session and challenged them to pass the federal
aid for education, a higher minimum wage, and extended Social Security Coverage
o Not one of these laws passed He included this in his campaign
o On his “Whistle stop Campaign”, he criticized the “Do-nothing Congress.”
 Stunning Upset
o Truman’s, “Give ‘em hell, Harry,” campaign worked and he won the close political
upset
o Also, the Democrats gained control of the congress
o However, suffered losses in the South, which had been democratic since
Reconstruction
 The Fair Deal
o After winning, Truman continued to propose ambitious economic programs which
extended the Roosevelt’s New Deal
o They included a nationwide compulsory health insurance and crop-subsidy system to
provide a steady income for farmers
o Congress defeated both measures
o However, some of Truman’s ideas prevailed, such as, the rise of minimum wage (40-75
cents), extended Social Security coverage (to about 10million more people), and
initiated flood control and irrigation projects
o Also provided money to set up low income housing in cities (810,000 housing units)
Republicans take the Middle Road
 I like Ike
o
o
Truman’s approval rating sank to an all-time low (23% 1951)
The Stalemate in the Korean War and the rising tide of McCarthyism, which casted
doubt of loyalty of government employees became overwhelming issues causing
Truman not to run for reelection
o The Democrats nominated Adlai Stevenson of Illinois to run against General Dwight D.
Eisenhower
o Eisenhower and VP Nixon won the election
o Despite Nixon’s accusation of taking illegal contributions, he admitted to only keeping a
dog, named Checkers. He used TV to address the issue, and it became known as, “The
Checkers Speech.”
 Walking in the Middle of the Road
o Eisenhower’s style was different from Democrats, his approach was called, “dynamic
conservatism or modern republicanism.”
o He called for the government to be conservative when it came to money and liberal
when it came to human beings
o He avoided many controversial issues, but could not avoid civil rights
o Civil Rights gained national attention because of court cases like Brown v. Board of
Education of Topeka
o Schools were to be racially integrated by law
o Also, a black seamstress who refused to give up her seat on the bus, Rosa Parks caused
a national push for Civil Rights
o However Eisenhower did not assume leadership of civil rights
o But he did accomplish a push for many programs that would bring a balance budget and
tax cuts.
o It also provided funding for public education, raised minimum wage, extended Social
Security and unemployment benefits, increased spending for public housing, and
backed the creation of interstate highways and the Department of Health, Education,
and Welfare
o Caused his popularity to soar and allowing him to win reelection of 1956