THE POSTWAR BOOM

THE AMERICAN DREAM IN THE 1950S

John Naisbitt

Learning Objectives: Section 1 - Postwar America 1. Identify economic and social

problems Americans faced after World War II.2. Explain how the desire for stability led to political conservatism.3. Describe causes and effects of social unrest in the postwar period.4. Contrast domestic policy under presidents Truman and Eisenhower.

The Truman and Eisenhower administrations lead the nation to make social, economic, and political adjustments following World War II.

SECTION 1: POSTWAR AMERICA

After WWII, returning vets faced a severe housing shortage

In response to the crisis, developers used assembly-line methods to mass-produce houses

Developer William Levitt bragged that his company could build a home in 16 minutes for $7,000

Suburbs were bornWith the help of the GI Bill, many veterans moved into

suburbs

Readjustment and RecoveryThe Impact of the GI Bill• 1944 GI Bill of Rights eases veterans’ return

to civilian life• Pays partial tuition, unemployment benefits;

provides loans

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Continued . . .

Housing Crisis• 10 million returning veterans face housing shortage• Developers use assembly-line methods to mass-

produce houses• Build suburbs—small residential communities

around cities

Redefining the Family• Tensions from changed gender roles during war

increase divorce rate

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continued Readjustment and Recovery

Economic Readjustment• Over 1 million defense workers laid off; wages

drop for many workers• Price controls end; 25% increase in cost of

scarce consumer goods• Congress reestablishes price, wage, rent controls

Remarkable Recovery• People have savings, service pay, war bonds;

buy goods long missed• Cold War keeps defense spending up; foreign aid

creates markets

REDEFINING THE FAMILY

A return to traditional roles after the war was the norm

Men were expected to work, while women were expected to stay home and care for the children

Conflict emerged as many women wanted to stay in the workforce

Divorce rates surged

MAIN IDEA QUESTIONS A – What problems did Americans

face after World War II? Housing shortages, employment readjustment to family

life, rising inflation and lower wages and shortages.

REMARKABLE ECONOMIC RECOVERY

Experts who predicted a postwar depression were proved wrong as they failed to consider the $135 billion in savings Americans had accumulated from defense work, service pay, and investments in war bonds

Americans were ready to buy consumer goods

B – What factors contributed to the American postwar economic boom? The GI Bill – offered veterans low-interest

loans and education benefits, wage, price, and rent controls;

The Cold War military build up and foreign aid programs, such as the Marshall Plan;

Personal savings and desire for consumer products.

DESPITE GROWTH, ISSUES PERSIST

One persistent postwar issue involved labor strikes

In 1946 alone, 4.5 million discontented workers, including Steelworkers, coal miners and railroad workers went on strike

Meeting Economic ChallengesPresident Truman’s Inheritance• Harry S. Truman can make difficult decisions,

take responsibility

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Truman Faces Strikes• 1946, higher prices, lower wages lead 4.5 million

to strike• Truman seizes mines, threatens to take over

railroads• Threatens to draft workers; unions give in

“Had Enough?”• Republicans win Senate, House; ignore Truman’s

domestic policy• Congress passes Taft-Hartley Act, overturns many

union rights

TRUMAN TOUGH ON STRIKERS

Truman refused to let strikes cripple the nation He threatened to draft the striking workers and then

order them as soldiers to return to work The strategy worked as strikers returned to their jobs

C – What actions did President Truman take to avert (avoid) labor strikes? Truman threatens to draft striking

workers, keep them on the job as soldiers and to take control of the railroads and mines.

Social Unrest PersistsTruman Supports Civil Rights• African Americans, especially veterans, demand

rights as citizens• Congress rejects civil rights laws; Truman

issues executive orders:- integrates armed forces; ends discrimination in government hiring

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Continued . . .

The 1948 Election• Southern Democrats—Dixiecrats—protest civil

rights, form own party• Truman calls special session; asks Congress for

social legislation• Congress refuses; Truman goes on “whistlestop

campaign”

SOCIAL UNREST PERSISTS

President Truman: African Americans felt they

deserved equal rights, especially after hundreds of thousands served in WWII

Executive Order 9981 issued on July 26, 1948

Desegregating the armed forces

Additionally, Truman ordered an end to discrimination in the hiring of governmental employees

D – How did Truman use his executive power to advance civil rights? Truman issued an executive order

integrating the military after Congress refused to act.

THE 1948 ELECTION

The Democrats nominated President Truman in 1948

The Republicans nominated New York Governor Thomas Dewey

Polls showed Dewey held a comfortable lead going into election day

Dewey

continued Social Unrest Persists

Stunning Upset• Truman defeats Thomas E. Dewey in close

political upset• Democrats regain control of Congress, lose some

Southern states

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Continued . . .

The Fair Deal• Truman’s Fair Deal is ambitious economic

program, includes:- higher minimum wage, flood control projects, low-income housing

• Congress passes parts of Fair Deal

TRUMAN WINS IN A STUNNING

UPSET

Truman’s “Give ‘em hell, Harry” campaign worked

Truman won a very close race against Dewey

Truman holds a now infamous Chicago Tribune announcing (incorrectly)

Dewey’s victory

To protest Truman’s emphasis on Civil Rights, the South opted to run a third candidate, South Carolina

Governor Strum Thurmond

REPUBLICANS PLAN FOR 1952 ELECTION

By 1951 Truman’s approval rating sank to an all-time low of just 23%

Why? Korean War, rising tide of McCarthyism, and a general impression of ineffectiveness

The Republican (right) were chomping at the bit in the ’52

election

E – What were some of Truman’s achievements as president? He led the US to final victory in

WWII, dealt with labor disputes, Supported social programs Civil rights legislation.

Republicans Take the Middle RoadI Like Ike!• Truman’s approval rating drops over Korean

War, McCarthyism- decides not to run for reelection

• Gen. Dwight D. Eisenhower runs against IL governor Adlai Stevenson

• Newspapers accuse VP candidate Richard M. Nixon of corruption- defends self in televised “Checkers speech”

• Eisenhower wins; Republicans narrowly take Congress

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Continued . . .

STEVENSON VS. IKE 1952 ELECTION

The Democrats nominated intellectual Illinois Governor Adlai Stevenson while the Republicans nominated war hero Dwight David Eisenhower

Stevenson Ike

“I LIKE IKE” Eisenhower used

the slogan, “I Like Ike” for his presidential campaign

Republicans used Ike’s strong military background to emphasize his ability to combat Communism worldwide

continued Republicans Take the Middle Road

Walking the Middle of the Road• Eisenhower conservative about money, liberal on

social issues• Ike tries to avoid civil rights movement, which is

gaining strength • On economy, works for balanced budget, tax cut• Pushes social legislation, new Dept. of Health,

Education, Welfare• Popularity soars; is reelected in 1956

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IKE’S VP SLIP-UP One potential disaster for

Ike was his running mate’s alleged “slush fund”

Richard Nixon responded by going on T.V. and delivering an emotional speech denying charges but admitting to accepting one gift for his children – a dog named Checkers

The “Checkers speech” saved the ticket

Nixon and his dog Checkers

IKE WINS 1952 ELECTION