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History - America - Truman
History - America - Chapter 3
13th May 2017
11 months ago
The Bretton Woods Conference Representatives of 44 allied nations met to discuss monetary future. The INTERNATIONAL MONETARY FUND (IMF) was formed as well as the World Bank. It obliged countries to tie their currency to the US dollar, and the US promised financial help when required.
Demobilisation of Troops Truman took the decision to demobilise 9,000,000 troops, but he left an army of 3,000,000. It prompted some short term unemployment, due to many more people searching for jobs.
Further Demobilisation Truman decided to further reduce the size of the military, to 1.5 million. Caused another short rise in unemployment.
Price Control Bill Truman suggested a Price Control Bill, in response to the inflation. Failed to get it through congress
Council of Economic Advisers (CEA) Suggested by Truman to advise the government. It got approval.
Employment Act Committed the country to maximum employment. Approved. Encouraged by the ideas of John Maynard Keynes.
GI Bill Helped ex-military people. -Interest-free home loans -Free university tuition -2.4 million went to university -No interest business loans -Benifited white soldiers most Overall $20 billion was spent on it.
Truman Re-elected Surprise win, as Republican Dewey was favourite. Truman campaigned tirelessly, whereas Dewey did very little.
Greatly Improved Economy Almost a 90% increase on output compared to 1939. Employment had also risen by over 2 million, along with average income by 40%.
Truman Doesn't Win Truman's lack of popularity prompted him not to stand for this election.
5% Unemployment Unemployment had risen to over 5% by 1950, causing increased pressure on minority groups and non-working women.
Strikes There were many industry strikes (rail, road and industry), to which Truman was very hard-lined. When threatened to be drafted, the unions and workers backed down, but Truman had lost a large number of his supporters.
The Fair Deal Truman's 21-point program for an improved economic and social America. -Aid to education -Tax cuts for low-income earners and an increase in public housing -Abolition of poll taxes -Anti-lynching laws -Establishment of a new department of welfare -National Health Insurance Never properly implemented, as there was not the fierce economic neccessity of before.
McCarthyism Joseph McCarthy claimed to have a list of 205 Communist Party members in the US State department. Tapped into the public fear of Communism. He was supported by a Republican who wanted to get the Democrats out of power.
25% Inflation This was caused by an increased number of consumers (because of the demobilisation). Contributed to the Democrat's loss in the 1946 mid-term congressional elections.
Baby Boom Created a huge new market for goods and services. Led to a housing boom
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