Good question “The Biggest domestic problem faced by Truman was inflation”
1. 25%
2. Leads to strikes
a. GOVERNMENT DEFICIT- spending more than they’re earning.
b. Stats
c. Reasons
d. Ultimately ends up with him losing support.
e. Causes 1946 results and political gridlock.
Political Gridlock- when it’s set up so that nothing will happen. Eg. When the president and the
majority of congress are in different houses. (When DIVIDED GOVERNMENT increased odds of
Political Gridlock)
Both houses of congress are in the republican party refer to as the “do nothing congress”
Partisanship- When only one party is supporting legislation.
Bipartisanship- When both parties are supporting legislation.
The democrats will need bipartisanship to support civil rights laws especially as their party is split
due to the Dixiecrats (southern democrats).
Summary
Vice President Truman became president upon the death of Franklin Roosevelt in the spring of 1945. Initially
embraced by the American people, the new president quickly lost popular support, as he mismanaged the
various crises arising from the transition to peacetime.
Inflation, strikes, and the emerging Soviet threat pulled his job approval ratings far into negative territory by the
time of the 1946 midterm elections. “Sherman was wrong,” Truman joked to the Gridiron Club, “I’m telling
you, I find peace is hell.”
Domestic Problems
1. Following WW2 there was an increased birth rate.
a. Women had to increasingly stay at home to look after children.
b. Increased demand for housing in the suburbs.
c. Increased pressure in the school system.
2. Government demand for war materials over.
a. Jobs were threatened.
b. Economy adapted to some extent.
c. Factories changed what they produced to serve new market for consumer goods.
i. Clothing
ii. Cars
iii. Household appliances
3. Unemployment
a. Rose to 5% by 1950
b. Those worst affected were minority groups and women.
c. They received little protection from trade unions.
d. Trade unions had been finding themselves increasingly under pressure for their leftwing sympathies.
4. Why was Truman not able to give returning GI’s (veterans) everything they wanted?
a. They want jobs houses, cars, good food, and product, go on like before.
b. Everything they have not been able to have during war.
c. Because he has to do so much.
d. There was not much post-war planning because all the economists thought that it
would take longer but the atomic bomb ended it.
The Fair Deal
1. Truman's 21-Point Programme
a. Presented to Congress on 6th September 1945
b. Incorporated economic and social measures to tackle domestic problems.
c. He wanted the legislature to be drafted and passed.
d. Few measures actually passed owing to conservative majority in Congress.
i. Republicans and Dixiecrats disapprove.
2. Truman's State of the Union Address
a. Address in January 1949
b. He was sustained high (emotionally) by legitimacy of victory in previous year's
election.
c. Stated that every part of population had the right to a fair deal from government.
d. Introduced a series of revised measures.
e. Became known as "The Fair Deal".
3. A couple of Fair Deal Measures.
a. Life Based living:
i. Freely available universal health care, to be funded by payroll deductions.
ii. Federally financed low-cost housing
iii. 'The redevelopment of large areas of the blighted and slum sections of our
cities'
iv. Increased Social Security payments and extended coverage.
v. Federal aid to education
vi. Public Works Programme
vii. A permanent FEPC (Fair Employment Practices Committee)
viii. The establishment of a new Department of Welfare
b. Money and stuff for me labourers.
i. A minimum wage rise from 40 cents per hour to 75 cents.
ii. Guaranteed prices and crop insurance for farmers
iii. Tax cuts for low-income earners
iv. The repeal of the Taft–Hartley Act
c. Civil rights legislation.
i. The abolition of poll taxes
ii. Anti-lynching laws
iii. An immigration bill.
d. A $4 billion tax increase to reduce the national debt and finance these programs.
4. Gen why did his programme work out like that and to what extent?
a. Lacked the fierce economic necessity that had allowed Roosevelt to push through
the 'New Deal'.
b. It was never implemented comprehensively.
5. Social and Economic Progress Under Truman
a. Employment
i. By 1953
ii. 62 million Americans were employed.
iii. Employment increased by 11 million under Truman.
iv. Unemployment was virtually zero.
b. Income was at an all-time high for:
i. Agriculture
ii. Share dividends
iii. Businesses
c. No bank had failed in nearly nine years.
d. Directly gov schemes relating to jobs (and not-jobs)
i. Minimum wage had been increased.
ii. Social Security benefits had been doubled.
iii. 7.8 million veterans had taken advantage of the GI Bill.
e. Millions of new homes had been financed to be built through government programs.
i. William J. Levitt built 1.5 million homes a year, a policy aimed at addressing
the growing demand for homes in the suburbs.
ii. Levitt's homes were popular among those who believed that
homeownership prevented communism.
f. A start had been made in clearing inner city slums.
i. Ironically this made housing worse for African Americans in the northern
cities.
ii. The cleared slums were not replaced with affordable housing quickly
enough.
iii. Caused rents to skyrocket.
g. Poverty
i. Poverty had been reduced.
ii. Percentage of Americans living in poverty fell from:
1. 33% in 1949.
2. 28% by 1952.
h. The Fair Deal included the national health insurance bill, which was labelled
'socialist' and ultimately failed.
Inflation
1. How did the relationship between Labour and Business change post 1945?
a. During WW2 Truman was controlling prices and wages but union leaders agreed to
not strike because of war efforts.
2.
3.
4.
5.
6.
i. Patriotism.
b. It was worse.
Tensions
a. Why Workers wants were happening?
i. During war, tight lid on wages and process.
ii. It was fine during the war because it was the war but when it’s over, we
want this to be better.
iii. Now strikes.
iv. Want to make up for all the years that was lost.
b. What do workers want?
i. They want Truman to keep prices stable. Stop inflation.
ii. They want higher wages.
c. Businessmen would absolutely not want this because they would lose out twice over.
They would want the opposite.
i. Lower wages higher prices.
d. Truman grew impatient with both groups.
i. Because higher prices and higher wages would lead to more inflation.
Why did Truman allow some prices to rise?
a. Because all the businessmen want that for them.
b. He does want to hold them though because he has a large labour voting base.
c. He lets some prices rise and others he controls.
i. Looks like a weak move.
ii. Confusing.
iii. This ends to him losing campaign later as people blame him.
iv. “to err is to Truman” campaign slogan.
v. Some markets might be doing better than others so some businessowners
are gonna be really irritated.
Inflation in Post-War America
a. Federal government budget deficits.
b. Shortages of consumer goods
c. Inflation hit 25% during 1945-6
Truman's Attempts to Combat Inflation
a. Truman sought to combat inflation through continued use of Roosevelt's Office of
Price Administration (OPA)
i. 1946
ii. Created in 1941 for during WW2.
iii. It established maximum prices and rents.
b. Conservative Democrats and Republicans sought the restoration of free market
forces.
c. OPA weakened, causing prices to rise spectacularly.
Union Power in Roosevelt Years
a. Wagner Act (1935) and wartime demand for labour increased union power.
i. Wagner Act was 1935 legislation.
ii. That assisted the establishment and work of labour unions.
b. In 1945, 15 million workers were unionised.
c. Around 36% of non-agricultural workforce unionised.
Strikes
Gen
1. Abt
2.
3.
4.
5.
6.
a. Organised labour is just trade unions.
b. They traditionally support the Democrats.
Big coverage Strike Facts
a. The General Motors strike in December 1945 sparked other strikes.
b. Stats
i. During 1946 there were 4985 strikes involving 4.6 million workers.
ii. Altogether, 116 million working days were lost: three times the previous
record high.
iii. Starts late 1945 but lasts throughout 1946.
c. Impact
i. Strikes hit a series of really important industries.
ii. Incapacitates several key factors of the economy.
iii. Stifled production of consumer goods.
Employers rejected demands for pay raises.
Labor responded with widespread strikes.
a. Labour is annoyed that Truman didn’t cap all the prices.
b. Prices are skyrocketing and their wages aren’t keeping up.
c. 800,000 steelworkers walked out in January.
d. 400,000 miners walked out in April.
Trumans attempts and desperation.
a. In August 1946
i. Truman announces that he would maintain price controls.
ii. AND that unions could pursue higher prices.
b. He recommended that there was compulsory mediation between union and
government (I think).
c. Truman was determined to resolve the situation with industrial unrest.
d. He was prepared to use any means necessary, such as drafting railway workers into
the army to order them to work.
e. Truman even considered censoring the press on national security grounds.
Relationship between Corporations and Organized Labor within a Global Setting.
a. The post-Second World War relationship between corporations and organized labour
reflected the needs of Cold War-era American capitalism.
b. The leadership of the American Federation of Labor and Congress of Industrial
Organizations (AFL-CIO) agreed to support domestic and international anticommunism in exchange for (for the benefit of unionised workers):
i. Better wages
ii. Better benefits
iii. Job security
c. Strengthened the United States' ability to create economic and political dependence
in the Third World after decolonization.
i. Used Cold War foreign policy as a tool to achieve this goal.
d. President Truman supported this approach, seeing labour as a way of strengthening
the USA.
Railway Workers
1. Who went on strike in May 1946?
a. The railway workers
b. Forced the country to a standstill.
c. They transport goods as well as people.
d. Would hugely eff up the economy as they can’t move anything around. (not as much
of a highway yet).
2. What was Truman’s immediate response?
a. He’s mad because he hates strikes as an ex-small business owner.
b. Truman tried to mediate between the strikers and the management.
i. The Union Leaders were uncooperative.
ii. One of Truman’s Aides was all like “you can’t just say no, he’s the president”.
iii. But then they were all “yeah, whatever. Nobody actually listens to this guy.
You can’t force us to do shit unless you get the necessary influence or
power.”
3. What does TruTru do next?
a. Truman is basically being bullied with the sheer number of telegrams he’s getting to
tell him to toughen up.
b. He threatened to draft striking railway workers into the army.
i. If they are in the army, he’s commander in chief and so he can control them.
c. Genuinely insane. Not even in the war would be allowed. Quite frankly
unconstitutional and was seen as such.
d. HES A DEMOCRATIC PRESIDENT. HIS VOTERS ARE THE WORKERS.
4. 25th May 1946 when addressing a Joint Session of Congress what happens?
a. Truman goes before joint session of congress.
b. Says it’s not party on party, it’s against the government.
c. Called for something to happen for him to pass the legislation for conscripting the
strikers.
d. While the House of Representatives agreed that he should have the authority to
conscript workers, the senate rejected the proposal as it’s unconstitutional.
e. He doesn’t have to because they get called off due to the threat. (during the session)
5. What was the price Truman paid for ending the railroad strikes?
a. It cost him the support of the unions which he needs.
b. He’s a democrat so his support in theory should largely be coming from workers (and
others) but he kinda messed up on that one.
c. Labour and liberal leaders also horrified.
d. In the 1946 midterms a lot of people who would have voted democrat just stayed
home instead.
The United Mine workers strike.
1. Gen
a. November 1946
b. The coal strike had paralyzed the economy and threatened damage.
2. Legal action
a. The government took them to court to stop the strike.
b. They defied an order to end their strike.
c. There was a long legal battle that went right up to the supreme court.
d. The government won
e. John L. Lewis, the miners' leader, was fined $10,000, and his union was fined $1.5
million by an unsympathetic judge.
3. Truman's actions were not an all-out attack on the unions but seen by some as such…
4. Truman primarily targeted John L. Lewis, whom he viewed as a racketeer (a person who
engages in dishonest and fraudulent business dealings) holding the country to ransom.
Steel Mills
1. Set Up
a. Steelworkers' Pay
i. Steel profits had soared.
ii. Steelworkers had not had a pay rise since 1950.
iii. In April 1952, steelworkers threatened to strike.
b. Steel was vital for producing large quantities of munitions for Korean War
2. Truman's Response
a. Truman seized control of steel mills under Executive Order No. 10340, despite
protests from industrialist owners.
b. Legal advisers and Chief Justice told Truman he had the necessary power to do so.
c. Truman assured staff (who were concerned that he had over exceeded his power) he
had the power to do so if it was to keep country from collapsing.
d. There was much criticism.
i. The Washington Post said it was one of the most high-handed acts by any
president.
ii. Truman's actions were an attempt to create a 'National Security State'.
iii. Basic freedoms could/might be denied in the cause of fighting the Cold War .
iv. Truman's actions were an attempt to create a state of constant emergency.
v. However, some others argued that the Korean War was a serious but
temporary crisis and not a means to justify granting extraordinary powers to
the president.
3. Owners' Appeal
a. Owners didn't want federal government control of their mills.
b. Appealed to law courts.
4. Supreme Court's Decision
a. Gen Set Up
i. Youngstown Sheet & Tube Co. v. Sawyer.
ii. Even through Supreme Court justices were appointed by Roosevelt and
Truman.
b. Decision
i. Supreme Court declared seizure unconstitutional.
ii. And that Truman had exceeded executive authority.
iii. Ruling limited presidential power during wartime.
c. Oooh, this baaaad.
i. Truman humiliated himself. (not great for reputation)
ii. It was the first presidential condemnation since 1866.
5. Strike
a. Strike went ahead and lasted 53 days.
b. Military output for 1952 was cut by a third.
c. Eventually settled on same terms as Truman had suggested 4 months before.
1946 Election
1. Relevance of midterm 1946.
a. Economic problems had given Truman political issue.
b. Republicans highlighted the problems of reconversion from a war economy.
i. During the midterm election campaigns prices rose 6% due to shortages.
(due to strikes as well as well as maybe the government lack of money???)
c. Slogan: “To Err Is Truman”
d. Won control of both House and Senate.
e. Political Gridlock leading up to 1948 election.
2. Truman and Congress
a. Truman governed as a president in opposition to the 'Do Nothing' Congress, run by
Republicans. (And supported by some Dixiecrats).
b. Congress rejected most of Truman's legislative proposals.
c. Truman vetoed 250 bills passed by Congress.
d. Congress overrode 12 of Truman's vetoes.
e. Really bad period of legislative conflict between president and Congress.
3. Reasons for Conflict
a. Congressional resentment over increased presidential power under Roosevelt.
i. Determination to regain control from presidency
ii. Roosevelt sought greater executive powers during a time of crisis, but there
was no crisis under Truman.
b. Truman exacerbated tensions by asking Congress to pass reforming legislation.
i. Conservative members of Congress tired of expensive New Deal-style
policies.
ii. House Minority Leader Joseph Martin complained that Truman had asked for
too much.
4. Republican Opposition.
a. Republicans made Truman's presidency difficult.
b. In 1946 mid-term elections, Republicans took control of Congress for the first time
since 1928.
c. Republicans interpreted the election as a people wanting their policies of:
i. Tax cuts
ii. Restoring the market economy
iii. Decreased federal government intervention in social welfare.
iv. However ACTUALLY was a voter reaction to inflation, strikes, and Trumans
dealings with such things.
5. Democratic Division
a. Congressional Democrats were deeply divided during Truman's presidency.
b. Liberal Democrats criticized him for failing to get more New Deal-style legislation
through Congress.
c. Conservative Southern Democrats agreed with Republicans over unions and
disagreed with Truman over civil rights.
d. Democrats lost the Solid South in the 1948 presidential election due to their liberal
stance on race.
The Taft-Hartley Act
1. Gen
a. 1947
b. Republican-controlled Congress passed the Taft-Hartley Act
c. ‘Twas to restrict union power.
i. An attempt to roll back the pro-workforce terms of the 1935 Wagner Act
d. Truman vetoed the bill, but congress overruled this veto.
i. Set the ideological battle lines between labour and corporate interests.
2. What’s it say?
a. Unions were liable for breach of contract.
b. Unions could not insist that all workers join a union as a condition of employment.
c. The president could order an 80-day 'cooling-off' period before strikes.
3. Impact on Popularity
a. Labour was furious at this limitation of union power.
b. Truman's pragmatic acceptance of the New Deal labour reforms was popular.
i. The election result of 1948 showed the unpopularity of the Republicans'
position on labour.
ii. The Democrats won a resounding victory, indicating support for labourfriendly policies.
The 1948 election (6)
1. Gen
a. Dixiecrats left the Democratic party due to the party’s liberal stance on race.
b. Dixiecrats selected Strom Thurmond as their presidential candidate.
c. Truman was re-elected to the surprise of many.
d. “States Rights Party”
2. Republican Overconfidence
a. Republicans were confident that Thomas Dewey would defeat Truman in the 1948
presidential election.
b. Republicans felt assured after their triumphs in the 1946 elections.
3. Truman's National tour
a. Truman won the presidential election thanks to his character and personality.
b. He embarked on a 33-day, 50,000 km whistle-stop tour of the nation.
c. During the tour, he defended his record and attacked the Republican 'do-nothing
Congress'.
i. Thomas Dewey had a more cautious aloof campaign; Truman causes a lot of
issues for republicans by railing hard.
ii. Truman gets nickname “Give ‘em Hell Harry”.
d. Truman loved addressing the people and they turned out in the hundreds of
thousands to hear him.
e. Truman always asked the crowd if they would like to meet his family.
i. Wife Bess and daughter Margaret came out to wave at the crowd.
f. Truman insisted on campaigning in Republican counties in Illinois and won them.
4. Truman's Personal Campaign
a. Truman's personal campaign was effective.
b. Voting results demonstrated the effectiveness of the campaign.
c. Truman was seen as 'the common man's man'.
d. Clark Clifford said, 'It wasn't Harry Truman the politician who won, it was Harry
Truman the man'.
5. Holy shit, he won?!?!? Flashback time I guess…
a. Absolutely nobody expected it.
b. Truman had so little confidence in his chances (and self) that he asked Eisenhower to
run for president (actually the republicans also asked him- small world huh?) even
though he declined.
6. General after.
a. Truman’s victory coincided with democrats regaining control of both houses of
Congress.
b. By now there is an improving economy.
c. Hardline stance against Soviet Union.
d. So, Truman completes next term with more domestic cooperation.
e. He does not run in 1952 as by now he is very unpopular.
Vague Summary
1. Truman's Handling of Unions and Inflation
a. Most Americans thought Truman mishandled unions and inflation.
b. Tried but failed to persuade Congress to maintain price controls.
c. Tried to steer a middle course between employer and union selfishness.
d. Ended up pleasing no one.
2. Economic Boom in 1948
a. Despite criticisms, economy was booming in 1948.
b. Demand was high due to GI Bill of Rights, soldiers' saved-up wartime wages, and
post-war baby boom.
c. Manufacturers and consumers prospered.
3. Conclusion
a. Truman did not damage the nation's economy.
b. At least partially successful in promoting economic growth.
c. Despite a mixed record with unions and inflation, Truman's presidency fostered
economic prosperity.