POSTWAR AMERICA
Unit 10.7
POSTWAR AMERICA
After the war, America’s economy was up as the war had
increased the per-capita income of Americans
15 million troops returning home found jobs and housing
hard to come by, and many feared the return of hard
economic times
These fears were not realized- much of America’s income
was tucked away in savings because wartime rationing
meant there were fewer consumer goods to buy
Millions of Americans were wanting to unleash pent-up
needs to BUY, BUY, BUY
By the 1950’s, the U.S. enjoyed the highest standard of
living in history of all societies
THE G.I. BILL
Formally known as the Servicemen’s Readjustment
Act of 1944
Supported the transition of 15 million veterans to a
peacetime economy
As a part of the GI Bill, the government covered the
cost of college expenses for the returning veterans
2 million GI’s attended college, starting a postwar boom in
higher education
Also provided $16 billion in low-interest loans for
veterans to buy homes and farms and to start
businesses
THE BABY BOOMERS
After millions of soldiers
returned home, there
was an explosion of
marriages and births
50 million babies
entered the U.S.
population between
1945-1960
The baby boomers
profoundly affected the
nation’s social
institutions and
economic life
RISE OF THE SUNBELT
Millions of Americans made moving a habit after
the war was over
A warmer climate, lower taxes, and economic
opportunities in defense-related industries
attracted many families to the sunbelt states
from Florida to California
Represented a huge shift of industry, people, and
political power from one region to the other
THE SUNBELT STATES
SUBURBAN GROWTH
Desperate need for housing after the war resulted in
a construction boom
William J. Levitt and Levittown:
17,000 mass-produced, low-priced family homes on Long
Island, New York
Low interest rates made moving to the suburb
affordable for many families
The majority of middle-class Americans became
suburbanites– this effect of mass movement was
disastrous for the inner cities
Major cities were becoming increasingly poor and racially
divided
LEVITTOWNS
ECONOMIC PROGRAMS
Employment Act of 1946: Council of Economic
Advisers who helped the president and Congress on
means of promoting national economic welfare
Truman asked Congress to continue the price controls
of wartime to keep inflation in check; instead,
Congress elected to relax the controls of the Office of
Price Administration
Inflation was up 25% in the first years of peace
4.5 million workers went on strike for wage increases
to combat inflation
Truman used former soldiers to fill the jobs of
railroad workers and miners
Most of the strikes were eventually called off
CIVIL RIGHTS
Truman was the first
modern president to
challenge racial
discrimination
Established the Committee
on Civil Rights (1946)
1948: Prohibited racial
discrimination in the federal
government and ended
segregation in the military
Fair Employment
Practices Commission:
Prevent employers from
discriminating against the
hiring of African Americans
Blocked by Southern
Democrats
REPUBLICAN CONGRESS
Unhappy with inflation and strikes, voters were
in a conservative mood in 1946 when they elected
a Republican majority in both houses of Congress
22nd Amendment (1951): Limited presidential
terms to a max of two terms (8 years)
Taft-Hartley Act (1947): Main objective was to
check the growing power of unions
Outlawed closed-shop policies
Outlawed secondary boycotts
THE ELECTION OF 1948
Several political parties
emerged in opposition to
Truman
Progressives- Liberal
Democrats who thought
Truman’s aggressive foreign
policy threatened world peace
Dixiecrats- Southern
Democrats who fled from
Truman’s support for civil
rights
Republican candidate
Thomas Dewey looked like
the winner from the
beginning, but Truman
confounded the polling
experts and won a decisive
victory
2 million majority in the
popular vote
303-189 electoral vote
THE FAIR DEAL (1949)
National healthcare insurance
Federal aid for education
Civil rights legislation
Funds for Public housing
New farm programs
Shot down by the Republican Congress except for
an increase in the minimum wage (40 to 75
cents/hour):
Political disagreements/Truman’s conflicts with
Congress
Foreign policy concerns of the Cold War
overshadowed domestic issues
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