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An Outline of American History
The Fair Deal
by U.S. Department of State


The Fair Deal was the name given to Harry Truman's domestic program. Building on Roosevelt's New Deal, Truman believed that the federal government should guarantee economic opportunity and social stability, and he struggled to achieve those ends in the face of fierce political opposition from conservative legislators determined to reduce the role of government.

Truman's first priority in the immediate postwar period was to make the transition to a peacetime economy. Servicemen wanted to come home quickly, but once they arrived they faced competition for housing and employment. The G.I. Bill, passed before the end of the war, helped ease servicemen back into civilian life by providing such benefits as guaranteed loans for home-buying and financial aid for industrial training and university education.

More troubling was labor unrest. As war production ceased, many workers found themselves without jobs. Others wanted pay increases they felt were long overdue. In 1946, 4.6 million workers went on strike, more than ever before in American history. They challenged the automobile, steel and electrical industries. When they took on the railroads and soft-coal mines, Truman intervened, but in so doing he alienated millions of working-class Americans.

While dealing with immediately pressing issues, Truman also provided a broader agenda for action. Less than a week after the war ended, he presented Congress with a 21-point program, which provided for protection against unfair employment practices, a higher minimum wage, greater unemployment compensation and housing assistance. In the next several months, he added other proposals for health insurance and atomic energy legislation. But this scattershot approach often left Truman's priorities unclear.

Republicans were quick to attack. In the 1946 congressional elections they asked, "Had enough?" and voters responded that they had. Republicans, with majorities in both houses of Congress for the first time since 1928, were determined to reverse the liberal direction of the Roosevelt years.

Truman fought with the Congress as it cut spending and reduced taxes. In 1948 he sought reelection, despite polls indicating that he had no chance. After a vigorous campaign, Truman scored one of the great upsets in American politics, defeating the Republican nominee, Thomas Dewey, governor of New York. Reviving the old New Deal coalition, Truman held on to labor, farmers and black voters, and so won another term.

When Truman finally left office in 1953, his Fair Deal was but a mixed success. In July 1948 he banned racial discrimination in federal government hiring practices and ordered an end to segregation in the military. The minimum wage had risen, and social security programs had expanded. A housing program brought some gains but left many needs unmet. National health insurance and aid-to-education measures never made it through Congress. Truman's preoccupation with Cold War affairs hampered his effectiveness at home, particularly in the face of intense opposition.

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