AP US History AMSCO Guided Notes

8.4: Economy after 1945

AP US History Guided Notes

AMSCO 8.4 - Economy after 1945

Learning Objectives

  1. Explain the causes of economic growth in years after World War II.
  2. Explain causes and effects of the migrations of various groups of Americans after 1945.
I. Postwar Economy

1. What economic conditions did the United States face immediately after World War II ended in 1945?

A. Employment Act of 1946

1. What progressive economic measures did President Truman propose in 1945 and what was the outcome?

2. What did the Employment Act of 1946 establish and what role did it play in postwar economic policy?

B. GI Bill-Help for Veterans

1. How did the GI Bill support the transition of 15 million veterans to a peacetime economy?

2. How did the benefits of the GI Bill differ between White and Black veterans, and what was the long-term impact?

C. Baby Boom

1. What caused the baby boom and how did it affect American society and the economy?

2. How did the baby boom influence women's roles in the workplace and at home during the postwar period?

D. Suburban Growth

1. What factors made suburban living affordable for middle-class Americans after World War II?

2. How did federal housing policies and Levittown development contribute to racial segregation and urban decline?

E. Rise of the Sun Belt

1. What attracted millions of Americans to the Sun Belt states after World War II and how did Cold War military spending facilitate this migration?

F. Inflation and Strikes

1. Why did inflation reach nearly 25 percent in the first year and a half after the war ended?

2. What caused the wave of strikes in 1946 and how did President Truman respond?

II. Truman versus the Republican Congress

A. Twenty-Second Amendment (1951)

1. Why did the Republican-controlled Congress propose the Twenty-Second Amendment and what did it establish?

B. Taft-Hartley Act (1947)

1. What were the main provisions of the Taft-Hartley Act and how did it limit union power?

2. Why did President Truman veto the Taft-Hartley Act and what was the outcome of his veto?

C. The Election of 1948

1. Why were Republicans confident of victory in 1948 and how did Truman's campaign strategy lead to his upset victory?

D. The Fair Deal

1. What programs did Truman propose as part of the Fair Deal and which ones were successfully enacted?

2. What two factors prevented most of Truman's Fair Deal proposals from becoming law?

III. Eisenhower in the White House (1953-1961)

A. The Election of 1952

1. What issues motivated voters in 1952 and why did Eisenhower's candidacy appeal to them?

2. How did Eisenhower's leadership style as president differ from his public image?

B. Modern Republicanism

1. What did Eisenhower mean by 'modern Republicanism' and how did it differ from traditional Republican ideology?

2. Which New Deal programs did Eisenhower expand and which did he oppose?

C. Interstate Highway System

1. What were the stated justification and actual effects of the 1956 Highway Act on American society and economy?

2. How did the emphasis on highways and automobiles negatively affect railroads, public transportation, and the environment?

D. Prosperity

1. What economic indicators demonstrate that the United States experienced significant prosperity during the Eisenhower years?

IV. Economy under the Democrats (1961-1969)

A. New Frontier Programs

1. What domestic programs did Kennedy propose as part of the New Frontier and why did most languish in Congress?

2. What economic successes did Kennedy achieve regarding trade, steel prices, and defense spending?

B. Johnson's Domestic Reforms

1. How did President Johnson's legislative experience help him pass programs that Kennedy had failed to enact?

2. How did Johnson's income tax cut and Great Society programs stimulate economic expansion in the 1960s?

V. Nixon's Domestic Policy

A. The New Federalism

1. What was the New Federalism and how did revenue sharing attempt to shift responsibility for social programs?

2. Why did the courts reject Nixon's practice of impounding funds appropriated by Congress?

B. Nixon's Economic Policies

1. What was stagflation and how did Nixon's economic policies shift from fighting recession to fighting inflation?

2. What measures did Nixon take in August 1971 to address inflation and improve American competitiveness?

3. How did the automatic Social Security increases approved in 1972 both help and harm the economy?

VI. Ford and Carter Confront Inflation

A. Troubled Economy

1. How did high inflation rates in the 1970s affect consumer spending, business investment, and government finances?

2. What strategy did Federal Reserve Chairman Paul Volcker use to combat inflation and what were its effects?

B. The Economic Shift in the 1970s

1. What factors had contributed to American economic dominance in the 1940s and 1950s?

2. How did international competition and technological change undermine American manufacturing and the middle class?

3. How did the economic challenges of the 1970s change American attitudes about their standard of living and future?

Key Terms

Harry S. Truman

Employment Act of 1946

Council of Economic Advisers

Servicemen's Readjustment Act (GI Bill of Rights or GI Bill)

baby boom

Levittown

Sun Belt

22nd Amendment

Taft-Hartley Act

Fair Deal

Dwight D. Eisenhower

Department of Health, Education, and Welfare (HEW)

soil-bank program

modern Republicanism

Highway Act

interstate highways

New Frontier

Trade Expansion Act

New Federalism

revenue sharing

stagflation