11. 1 Conditions at Home
When Roosevelt died in April 12, 1945, the mantle
of Presidency fell on 61-year old Harry Truman. As President, Truman
faced the most complicated problems, both domestic and international,
after the 2nd World War.
The most important task before the President was
to bring the countryís economy to back to normal. Several economists
had predicted that after the war, there would be large-scale unemployment.
In America, this never really happened. The government succeeded
in bringing the nationís economy back on the peacetime track.
Another problem faced by the Truman administration
was the question of inflation. There was a possibility of a sharp
rise in prices in a situation where several Americans had a great
amount of purchasing power. Coupled with the short supply of many
necessary items. Aware of this danger, the Truman government wanted
to continue the O.P.A. or the Office of Price Administration,
till the supply of necessary goods caught up with increasing demand.
The President wished to keep wartime control on price, rent and
wages until the reconversion program was over. But the National
Association of Manufacturers demanded an end to wartime controls.
They believed that production would get an impetus, if controls
of price were put to an end. Thus, although the Congress extended
the price control Act for another year, it reduced the powers of
the O.P.A. considerably. But the President vetoed the Act and the
prices shot up immediately. Elections in November went against the
Truman administration. Taking this as a cue, the President abandoned
all controls except on rents. In other words, Trumanís attempts
to prevent inflation failed.
The Reconversion program was further complicated
due to frequent labor-management disputes. Labor wanted higher wages
up to 30 per cent as prices had shot up by 33 per cent since 1944.
The management refused to accept the demand. Once the war came to
an end, management did not reduce wages, but did away with overtime.
The misery of the labor class was heightened due to the sharp rise
in the cost of living. This was one of the major reasons for strikes
in railroad, motorcar and coal industries. Two major strikes in
1946, i.e. the coal strike and the railroad strike shook the entire
country. After a series of strikes which affected production, a
wage settlement was agreed upon, which increased wages by 18 1\2
cents per hour. The administration, by instituting a fact-finding
committee, played a key role in the settlements.
Table of Contents
- Chronology of Major Events in this Period
11.1 - Conditions at Home
11.2 - The Employment
11.3 - The Taft-Hartley Labor Management
11.4 - The Truman's Civil
11.5 - The McCarthy Period
11.6 - The Cold War Abroad
11.7 - The Korean War
11.8 - The Eisenhower Administration
11.9 - The Civil Rights movement
and the question of Desegregation
11.10 - The Labor Reform act
11.11 - The Budget
11.12 - The Economy in the
11.13 - The Communist Threat
11.14 - The Threat of Nuclear
11.15 - The Exploration of
11.16 - The Geneve Conference
11.17 - Our WorldToday