Harry Truman

Domestic Policy

Background

• As a senator and later vice president, Truman had supported FDR's New Deal, a progressive and wide-ranging government initiative to combat the Great Depression.
• As a Democrat, Truman believed the government had an important role in regulating the economy and providing well-being to citizens.

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• Truman was famous for his plain-speaking and motto “the buck stops here”
• He was active within the Democratic party in his home state of Missouri

How do we know Truman already!?

https://www.youtube.com/watch?v=L2MQldviRtE

What do you think he means by America ‘facing up to their responsibilities’?

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What is this speech leading up to the implementation of?

Communism

Truman Anticipation Guide

True

False

Truman regretted using the Atomic bomb in Hiroshima and Nagasaki

Truman was re-elected in 1948 by a landslide because he was so popular

Frequent battles with Congress became a feature of his presidency

Truman believed an improvement in living conditions would keep people away from Communism

Truman’s efforts to improve life for all Americans became law

Truman made many attempts to improve civil rights for African-Americans

Impact of WWII

1 million African-Americans served in the army but came home to a society typified by segregation- riots and fights frequently occurred

Demand for consumer goods increased

American government was able to save $134bn through increased war production

Increased birth rate

Influx of refugees- The Displaced Persons Act (1948)

Development of suburbs and growth of car culture

Marshall Plan meant huge US investment but also meant that participating countries allowed US to invest in their economies and in turn invested in US economy

America established as a great military power: “I regarded the bomb as a military weapon and never had any doubt that it should be used”

Mason Jar Company went from producing Mason Jars to helmets during WWII- hence the name Jarheads – now back to producing Mason Jars

Reasons for Post-War Prosperity

TV, manufacturing

Cars

US spend on military would remain large even in peacetime – this kept unemployment down.

Discovery of oil in Iran and Saudi meant that energy could be sourced cheaper

Origins of the Fair Deal concept

• Borrowing from FDR's ''New Deal'' terminology, Truman came up with program of his own called the ''Fair Deal''.
• The Fair Deal consisted of a national healthcare program, federal aid for education, a raised minimum wage, public housing projects, progressive taxation, and other initiatives in-line with liberal politics.

• The terms used to describe the domestic agenda of the Truman administration 1945-1953
• Truman operated within a Republican dominated congress so only a few of his initiatives became law – only those which were supported by Republicans
• The main areas for reform were Education, Health, Social Security and Civil Rights 🡪 only small inroads were made in some areas but were later development by LBJ

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September 1945- Truman issues congress with a list of areas for development

1. Major improvements in the coverage and adequacy of the unemployment compensation system.
2. Substantial increases in the minimum wage, together with broader coverage.
3. The maintenance and extension of price controls to keep down the cost of living in the transition to a peacetime economy.
4. A pragmatic approach towards drafting legislation eliminating wartime agencies and wartime controls, taking legal difficulties into account.
5. Legislation to ensure full employment.
6. Legislation to make the Fair Employment Practice Committee permanent.
7. The maintenance of sound industrial relations.
8. The extension of the United States Employment Service to provide jobs for demobilized military personnel.
9. Increased aid to farmers.
10. The removal of the restrictions on eligibility for voluntary enlistment and allowing the armed forces to enlist a greater number of volunteers.
11. The enactment of broad and comprehensive housing legislation.
12. The establishment of a single Federal research agency.
13. A major revision of the taxation system.
14. The encouragement of surplus-property disposal.
15. Greater levels of assistance to small businesses.
16. Improvements in federal aid to war veterans.
17. A major expansion of public works, conserving and building up natural resources.
18. The encouragement of post-war reconstruction and settling the obligations of the Lend-Lease Act.
19. The introduction of a decent pay scale for all Federal Government employees—executive, legislative, and judicial.
20. The promotion of the sale of ships to remove the uncertainty regarding the disposal of America’s large surplus tonnage following the end of hostilities.
21. Legislation to bring about the acquisition and retention of stockpiles of materials necessary for meeting the defence needs of the nation.

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What the Fair Deal looked like to everyday Americans

1949- The Fair Deal �"Every segment of our population and every individual has the right to expect from our government a fair deal."

• Increased minimum wage to $0.75 p/hour
• Child labour prohibited
• Social security improved for the permanently disabled and child/mother benefit improved
• National School Lunch and Milk Act made school lunches available to all. Education budget increased. Grants made available
• Research funding increased for healthcare programmes. Federal spending made available for aged persons or those on low incomes

1946

The Employment Act

Gave the federal government the responsibility of fighting unemployment.

Council of Economic Advisors (CEA) was created

Based on Kenysian Theory of spending through recession…aims towards full employment

This council provided the president with insights into economic trends and conditions.

creates the Joint Economic Committee- a committee composed of both senators and representatives instructed to review it as the government's economic policy at least annually.

1949

• increased the construction of public housing
• Slum clearance and urban renewal
• government regulated in the mortgage process.
• Federal control of rents
• Research funding into new construction techniques

The Housing Act

The G.I. Bill was a popular government intervention that helped millions of World War II veterans reintegrate into American society and pursue the ''American Dream'' that was so characteristic of the 1950s.

Zero down low interest business loans

Provided opportunities for soldiers returning from war.

Zero down, low interest home loans

Could attend the college of their choice free of charge as long as they met the entrance requirements

2.5m soldiers went to college!

Passed 1944

Unemployment and medical benefits

Results

• Hoped it would prevent the under-privileged from becoming dissatisfied with government and becoming communist
• Truman's ''Fair Deal'', though not fully implemented, helped provide inspiration for President Lyndon B. Johnson's ''Great Society.'‘
• The Fair Deal promised increased coverage for Social Security, federal aid to education, and compulsory health insurance
• A Census report confirmed that gains in housing, education, living standards, and income under the Truman administration were unparalleled in American history
• By 1953, 62 million Americans had jobs, a gain of 11 million in seven years, while unemployment had all but vanished.
• In fact, according to one historian, Truman had “done more than any President since Lincoln to awaken American conscience to the issues of civil rights"

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Civil Rights

• February 2^nd 1948, sent Congress a ten-point civil rights message calling for a new law against lynching, a federal fair-employment-practices committee, an end to segregation in interstate transportation, and protection of the right to vote.
• None of these proposals was enacted, and had to await later times�

• Loyalty Review Board 1947- to investigate communist spies in the government
• Vetoed the McCarron Internal Security Bill 1950 🡪 would allow the indiscriminate detention of individuals suspected of sedition (later passed by Congress)
• Smith Act 1940 = anti-sedition law
• Driven by intense support for McCarthy and the development of McCarthyism

What do you think is the relevance of the ‘Fair Deal’ being represented as an egg?

What is meant by “Somebody’s got to hatch it?”

Do you think that this is pro or anti the legislation? Explain your answer.

Reasons for Limited Success

Hints for your answer

It was a 21 point programme originally

Truman’s popularity

“to err is to Truman”

Republican dominated congress

Include foreign and domestic policy

Background

Achievements

Obstacles

2012

How well did President Harry Truman or President Lyndon Johnson handle the challenges he faced?

THE ECONOMY: 1945-89

• What does Truman do? 1945-53

EISENHOWER: 1953-61

• Introduced the Interstate Highway Act - $33.5bn spent on 70,000km of roads 🡪 allowed for the transport of people, goods and services
• He dramatically improved the availability of healthcare to the population and social security improved
• Eisenhower had great plans but some of the resources were diverted to fund the Vietnam War
• Development of nuclear energy and power stations 🡪 employment and manufacturing increased
• Construction boom- suburbs grew: 25% of Americans live in the suburbs by 1959

THE ECONOMY: 1945-1989

• Truman and Eisenhower: 1945-61