Economic policy

How did the Truman administration aid decommissioned veterans? (2)

GI Bill- this provided government aid in getting a 90% mortgage and guaranteed 52 weeks of unemployment benefits as well as college loans for veterans

Gradual demobilisation (9 million in 1945, further 1.5 million in 1946)

Truman dealt very effectively with unemployment, what statistic shows this?

During his presidency unemployment never exceeded 5%

How bad was inflation between 1945-46 and how did Truman attempt to deal with this?

25% inflation from 1945-46.

Truman proposed a price control bill in 1946 but congress saw Truman as weak so they heavily watered it down. Later that same year, Truman established the council of economic advisors (CEA) and passed the employment act to ensure “maximum employment”.

how did the baby boom of 1945-50 boost the economy?

boom in the demand for family products and stimulation of the housing market as seen in places like Levittown.

By 1952, how much had US output increased relative to 1939? (4)

90% overall

industrial output doubled,

agricultural output increased by 1/3

annual business investment rates rose from $14 billion to $38 billion.

How had average income and employment rates risen by 1952?

employment- 46 million to 61 million

average income had risen by 40%

When was the fair deal proposed and what did it entail? (9) (YEAR)

Proposed in 1949 after Truman’s victory in the 1948 election. It promised:

Federal aid to education

Tax cuts for low incomes

Increased public housing

Abolition of poll taxes

Anti-lynching legislation

Permanent FEPC (fair employment practice committee)

Minimum wage increase from 40-75 cents

National health insurance

expanded social security coverage

Was the fair deal successful?

Overall, no. Most proposals such as anti-lynching laws were rejected BUT poverty had fallen to 28% under Truman so he saw some successes but most of the fair deal was not put into practice.

Overall, how was Truman’s economic performance? (3)

He failed on the issue of inflation and unions by compromising too much and pleasing nobody.

Although the housing market boomed thanks to developments such as Levittown, this only benefitted white people.

However, the baby boom and low unemployment did stimulate the economy and maintain the US’ status as a superpower.