Question

How did the Cold War establish the parameters for economic, social, and political life in the United States in the immediate postwar years from 1945 to 1960? (300 words)

Answer 1

As World War II was coming to a close, many Americans were concerned about domestic economy. While the war had spurred employment and development, and pulled the nation out of the Great Depression, the war economy could not last forever. In fact, millions of veterans will soon return home searching for work that could no longer be available. As inflation soared, many feared that the 1946 and 1947 rapid postwar recession heralded the Great Depression's return. Truman and Congress have taken measures to counter the economic crisis. For example, Congress passed the Employment Act in 1946 which established the Council of Economic Advisors to help Truman increase domestic jobs.

The Montgomery G.I. Bill, which Congress passed in 1944 to help the 15 million returning U.S. veterans re-enter the job market, was possibly the most effective measure taken in fighting the recession. Also known as the Readjustment Act of the Servicemen, and the G.I. Bill of Rights, the G.I. Bill has given government grants to any veteran who wants to go back to school. Neither Truman nor Congress expected that over half of the returning veterans would benefit from about $15 billion in federal grants to attend technical schools, colleges, and universities. The G.I. Bill has set aside an equivalent sum of money to provide loans for new houses, farms, and businesses for veterans.

Literally millions of industrial labourers went on strike during the recession to protest against low wages. Truman tended to support the trade unions as he had during the war, but conservatives feared the economy would be seriously crippled by stopping industrial output. In 1947, Republicans in Congress passed the Taft-Hartley Act, over Truman's veto, to limit the power of unions to fix this issue. The act outlawed all-union employment, made employers responsible for losses sustained during interunion disputes, and requested that labor leaders condemn Communism and take oaths of loyalty.

Indeed, the U.S. economy rapidly recovered from the brief 1946–1947 recession, and then fully exploded, making Americans the world's richest citizens. The U.S. economic upsurge seemed relentless for about twenty years. Close to two-thirds of American families reached middle-class status within only a few years. During the 1950s the Gross National Product (GNP) more than doubled and then doubled again in the 1960s. By 1960, most American families had a car, a television, and a refrigerator and owned their own home — an remarkable feat considering that fewer than half of Americans had all of those luxuries just thirty years ago.