1945-1975 Flashcards
(75 cards)
Truman’s Domestic Policies
Largely followed Roosevelt’s plans for post-war reconstruction
Economic Bill of Rights (1944)
Legislation to promote employment appeared unnecessary
USA maintained full levels of employment but faced problems in terms of labour relations
Post war period
Inflation in food prices rose 25% (1945-47)
Wartime restrictions on wage rises slow to be repealed
Period of Unrest (1946)
General Motors employees demanded 35% wage rise
Coal strike in April 1946 - threatened post-war recovery; May, freight loading fell by 75%, many factories stopped production (strike called off due to White House intervention)
Taft-Hartley Act (1947)
Outlawed union practices (e.g. closed shop, secondary strikes)
Made union leaders swear they were non-communist
80 day cooling-off period before strike could take place
Unions required to make financial statements available for scrutiny
Fair Deal (1945)
Increased minimum wage to 75c/hr
Increased social security benefits
More public sector housing
Eisenhower
Immensely popular due to wartime service
Moderate Republican
Main aim was a balanced budget
Did not believe in minimal government
Increased minimum wage from 75c to $1
Matched the mood of American prosperity that didn’t need extensive government legislation
Department of Health, Education and Welfare (1953)
Set up to oversee these areas
Highways Act (1956)
Construction of 41,000 miles of roads to connect the country
Kennedy
Democrat
Planned to improve people’s lives through ‘New Frontier’ programme (included urban renewal, medical care for elderly, high minimum wage)
Increased minimum wage to $1.25/hr
Undertook public work schemes costing $900m
Extended social security benefits
Manpower and Training Act (1962)
Helped retrain unemployed so they could work again
Johnson
The ‘Great Society’
Declared war on poverty
Objectives of the Great Society
To give poorer people the capability to improve their lives
To provide them with direct help where necessary
Economic Opportunity Act (1964)
Created various programmes (e.g. Job Corps) to work on community projects
Funded by federal government
Medicare (1965)
Healthcare provision paid for out of taxes and by federal government
Provided care for the elderly, funded in part from their taxes
Medicaid - provided healthcare cover for the poor
Elementary and Secondary Education Act (1965)
Marked first time federal authorities became involved in funding public education
Aimed to ensure provision was equal across the USA
Failings of the Great Society
Comprehensive but results disappointing
Money designated for its provision was diverted towards the Vietnam war
States diverted funds themselves away from provisions (e.g. education)
Costs of provisions too high - coverage less than anticipated
Nixon
Republican
More interested in foreign affairs than domestic
Wanted to reduce the role of government
Maintained many great society programs but the economy suffered inflation
Nixon’s New Economic Policy
Aimed to reduce borrowing by forcing up interest rates
Failed in 1971 - introduced 90 day prices and wages freeze; created Pay Board and Price Commission to oversee
Inflation slowed and 7.9% devaluation of $ made US goods more competitive abroad
Watergate (1972)
Burglar discovered in democratic party headquarters in Watergate building during election campaign
Found to have been sent by Nixon’s campaign managers to bug the offices
Nixon denied this
Investigation of scandal progressed to presidential level and Nixon forced to resign in 1974
Impact of Watergate
Ford angered people with his pardoning of Nixon in Sept 1974
Many Americans believed he should have been held to account
Economic change in the post-war period
Never-before-seen prosperity in range and longevity
1945 - US had 42% of the world’s wealth (only had 7% of the population)
Income per capita was $1450 - twice as high as Britain
GNP risen 35% since 1945
Economic expansion led to greater employment opportunities for more of the population - huge growth in consumerism
Bill of Rights (1944)
Offered grants to ex-servicemen for education or business enterprise
8 million took up offer
Provisions to be administered by Veterans Association
One provision - largely unnecessary, Vietnam veterans awarded $20 per week while looking for work, less than 20% of money allocated was distributed because work was readily available
Provision of Mortgages for veterans
GI Bill offered home loans to facilitate home ownership
Offered mortgages of up to 90% of the costs
Interest rates as low as 4%
2.4 million veterans took advantage
Significant factor in development of home ownership