C H A P T E R 2 8

The Affluent Society and the

Liberal Consensus

1945–1965

Chapter Annotated Outline

I. The Affluent Society

A. The Economic Record

1. By the end of 1945, U.S. corporations and banking institutions so dominated the world economy that the period has been called the Pax Americana.

2. American economic leadership translated into affluence at home; domestic prosperity benefited a wider segment of society than anyone had thought possible in the dark days of the Great Depression.

3. The predominant thrust of modern corporate life was the consolidation of economic and financial resources by oligopolies—a few large producers that controlled the markets.  4. Conglomerates were protected from instability in any one market by diversifying; therefore, they were more effective international competitors.  5. The weakness of competition abroad enabled American businesses to enter foreign regions when domestic markets were saturated or experiencing recessions.

6. A meeting in Bretton Woods, New Hampshire, resulted in the creation of two global institutions—the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund (IMF).  7. The first General Agreement on Tariffs and Trade (GATT) led to the establishment of an international body to oversee trade rules and practices.

8. The World Bank, the IMF, and GATT encouraged stable prices, the liberation of trade barriers and the reduction of tariffs, flexible domestic markets, and free trade based on fixed exchange rates.

9. U.S. economic supremacy abroad helped to boost the domestic economy, creating millions of new jobs; the fastest growing sector was white-collar jobs.

10. The AFL-CIO, created by the 1955 merger of the Congress of Industrial Organizations and the American Federation of Labor, represented over 90 percent of America’s union members.  11. In exchange for fewer strikes, corporate managers often cooperated with unions, agreeing to contracts that gave workers secure, predictable, and steadily rising incomes.

12. Consumer spending soared, and inflation was low; yet the boon was marred by periodic bouts of recession and unemployment that particularly hurt low-income and nonwhite workers.

B. The Suburban Explosion

1. Americans began to leave older cities in the North and Midwest for newer ones in the South and West; there was also a major shift to the suburbs.

2. Arthur Levitt applied mass-production techniques to home construction; other developers followed suit in subdivisions all over the country, hastening the exodus from farms and cities.

3. New suburban homes, as well as the Federal Housing Administration and Veterans Administration loans to mortgage them with, were reserved mostly for whites.

4. Although Shelley v. Kraemer (1948) ruled that restrictive covenants were illegal, the practice continued until the civil rights laws of the 1960s banned private discrimination.

5. New growth patterns were most striking in the South and West, where inexpensive land, unorganized labor, low taxes, and warm climates beckoned; California grew most rapidly.  6. Booming urban populations in the South and the West brought higher crime and poverty rates, and increasing demands for water in the Southwest resulted in environmental and health problems.

7. Automobiles were essential to the growth of suburbs and to the development of the “Sun Belt”; the 1950s guzzlers became symbols of status and success.

8. Highways were funded by federal government programs such as the National Interstate and Defense Highway Act of 1956; air pollution and traffic jams soon became problems in cities.

9. As Americans began to drive to suburban shopping malls and supermarkets, downtown retail economy dried up, helping to precipitate the decay of the central cities.

C. American Life during the Baby Boom

1. The new prosperity of the 1950s was aided by a dramatic increase in consumer credit, which enabled families to stretch their incomes.  2. Aggressive advertising by corporations contributed to the massive increase in consumer spending.

3. Consumers had more free time in which to spend their money; millions took to the interstate highways, spurring dramatic growth in motel chains, restaurants, and fast-food eateries.  4. Television supplanted radio as the chief diffuser of popular culture; it portrayed American families as white, middle-class suburbanites, and nonwhite characters were usually servants.

5. The Federal Communications Commissioner called television “a vast wasteland”; however, its images of postwar family life and society fit with the expectations of many Americans.  6. After the depression, Americans yearned for security and a reaffirmation of traditional values; this yearning manifested itself in a renewed national emphasis on religion.

7. In 1954, the phrase “under God” was inserted into the Pledge of Allegiance, and in 1956 Congress added “In God We Trust” to all U.S.  coins.

8. Norman Vincent Peale’s The Power of Positive Thinking embodied the trend toward the therapeutic use of religion in order to assist Americans in coping with the stresses of modern life.  9. Evangelical religion experienced resurgence with the popular Reverend Billy Graham.  10. Postwar family demographics changed from previous years: marriages were remarkably stable, there was a drop in the average age at marriage, and the birthrate shot up.

11. The baby boom prompted a major expansion in the nation’s education system, and babies’ consumer needs helped to fuel the economy.  12. Coupled with national defense expenditures, family spending on consumer goods fueled unparalleled prosperity and economic growth in the 1950s and 1960s.

13. As parents of baby boomers, men were expected to conform to a masculine ideal that emphasized their role as responsible breadwinners.  14. Women were advised that their proper place was in the home; endorsing the “feminine mystique,” psychologists pronounced motherhood the only “normal” female sex role.

15. Not all women chose to be housewives; an increase in the overall number of working women coincided with an increase in the number of older,married, middle-class working women.

16. Working women still bore full responsibility for child care and household management.  17. The emergence of a mass youth culture had its roots in the democratization of education, the growth of peer pressure, and the increasing purchasing power of teenagers.

18. America’s youth were eager to escape suburban conformity, and they became a distinct new market that advertisers eagerly exploited.  19. The rock ‘n’ roll that teens were attracted to in the 1950s was seen by white adults as an invitation to race-mixing, sexual promiscuity, and juvenile delinquency.

20. In major cities, gay men and women founded gay rights organizations, but many gays were still perceived as a threat to mainstream sexual and cultural norms and therefore remained closeted.

21. Postwar artists,musicians, and writers expressed their alienation from mainstream society through intensely personal, introspective art forms; abstract expressionism captured the chaotic atmosphere of the nuclear age.  22. A similar trend developed in jazz, as black musicians originated a hard-driving improvisational style known as “bebop.”

23. The rebellion of the Beats, although strictly cultural, inspired a new generation of rebels in the 1960s who championed both political and cultural change.

II. The Other America

A. Migration to Cities

1. With jobs and financial resources flowing to

the suburbs, urban newcomers inherited a declining

economy and a decaying environment

·        the “Other America.”

2. The War Brides Act, the Displaced Persons Act, the McCarran-Walter Act, and the repeal of the Chinese Exclusion Act all helped to create an influx of immigrants into American cities.  3. The federal government welcomed Mexican labor under its bracero program but deported those who stayed illegally; 4 million Mexicans were deported during “Operation Wetback.” 4. Residents of Puerto Rico had been American citizens since 1917, so they were not subject to immigration laws; they became America’s first group to immigrate by air.

5. Cuban refugees were the third largest group of Spanish-speaking immigrants; the Cuban refugee community turned Miami into a cosmopolitan, bilingual city almost overnight.

6. Internal migration from rural areas brought large numbers of people to the cities, especially African Americans, after the introduction of innovations like the mechanical cotton-picker, which reduced southern demand for labor.  7. By 1960, about half of the nation’s black population was living outside the South, compared with only 23 percent before World War II.  8. After the 1953 “Termination” programs, many Indians settled together in poor urban neighborhoods alongside other nonwhite groups; many found it difficult to adjust to an urban environment and culture.

B. The Urban Crisis

1. Between 1950 and 1960, the nation’s twelve largest cities lost 3.6 million whites and gained 4.5 million nonwhites.

2. As affluent whites left the cities, urban tax revenues shrank, leading to the decay of services and infrastructure; housing continued to be a crucial problem.

3. Urban renewal demolished about 400,000 buildings and displaced 1.4 million people between 1949 and 1967.

4. Postwar urban areas increasingly became places of last resort for America’s poor; once there, they faced unemployment, racial hostilities, and institutional barriers to mobility.

5. Two separate Americas emerged: a largely white society in suburbs and an inner city populated by blacks, Latinos, and other disadvantaged groups.

III. John F. Kennedy and the Politics of Expectation A. The New Politics 1. Democrat John F. Kennedy, with Lyndon B.  Johnson as his running mate, won the 1960 presidential election over Republican Richard M. Nixon.

2. Kennedy called for civil rights legislation, health care for the elderly, aid to education, urban renewal, expanded military and space programs, and containment of communism abroad.

3. Kennedy practiced what became known as the “new politics,” an approach that emphasized youthful charisma, style, and personality more than issues and platforms.

4. Television was a powerful medium for political life; voters who listened to the 1960 presidential debates on the radio concluded that Nixon had won, and those who watched it on TV felt that Kennedy had won.

5. Kennedy, a Catholic, successfully appealed to the diverse elements of the Democratic coalition;

Johnson brought in the votes of southern white Democrats.

B. Activism Abroad

1. A resolute cold warrior, Kennedy proposed a new policy of flexible response measures designed to deter direct attacks by the Soviet Union; it greatly expanded the militaryindustrial complex.

2. Kennedy adopted a new military doctrine of counterinsurgency; soon the Green Berets of the U.S. Army’s Special Forces were being trained to repel guerrilla warfare.

3. The Peace Corps, the Agency for International Development, and the Alliance for Progress provided food and other aid to Third World countries, bringing them into the American orbit and away from Communist influence.  4. Fidel Castro overthrew Cuban dictator Fulgencio Batista in 1959; Cuban relations with Washington deteriorated after Castro nationalized American-owned banks and industries and the United States declared an embargo on Cuban exports.

5. Isolated by the United States, Cuba turned to the Soviet Union for economic and military support.

6. In early 1961, Kennedy attempted to foment an anti-Castro uprising; the CIA-trained invaders were crushed by Castro’s troops after landing at Cuba’s Bay of Pigs on April 17.  7. U.S.-Soviet relations further deteriorated when the Soviets built the Berlin Wall in order to stop the exodus of East Germans; the Berlin Wall remained a symbol of the cold war until 1989.

8. In October 1962, American reconnaissance planes flying over Cuba photographed Sovietbuilt bases for intermediate-range ballistic missiles.

9. In a televised address, Kennedy confronted the Soviet Union and announced that the United States would impose a “quarantine on all offensive military equipment” intended for Cuba.

10. After a week of tense negotiations, both Kennedy and Khrushchev made concessions:

the United States would not invade Cuba, and the Soviets would dismantle the missile bases.  11. In 1963 the United States, Great Britain, and the Soviet Union agreed to stop testing nuclear weapons in the atmosphere, in space, and under water; underground testing would continue.  12. A new Washington-Moscow telecommunications “hot line” was established so that leaders could contact each other quickly during potential crises.

C. The New Frontier at Home

1. Kennedy could not mobilize public or congressional support for his New Frontier agenda; also, he was not as passionate about domestic reform as he was about foreign policy.  2. Funding for the National Aeronautics and Space Administration (NASA) and its Mercury program won support; on May 5, 1961, Alan Shepard became the first American in space.  3. After Kennedy’s assassination, the Tax Reduction Act (the Kennedy-Johnson tax cut, 1964) marked a milestone in the use of fiscal policy to encourage economic growth.

4. Kennedy managed to push through legislation raising the minimum wage and expanding Social Security benefits, but he ran into congressional opposition on federal aid to education and medical insurance for the elderly.

D. New Tactics for the Civil Rights Movement

1. One of the gravest failures of the Kennedy administration

was its reluctance to act on civil

rights.

2. After the Woolworth’s sit-in, the Southern

Christian Leadership Conference helped to organize the Student Non-Violent Coordinating Committee in order to facilitate sit-ins by blacks demanding an end to segregation.  3. The Congress of Racial Equality organized freedom rides on bus lines in the South to call attention to segregation on public transportation; the activists were attacked by white mobs.  4. Most southern communities quietly acceded to the Interstate Commerce Commission’s prohibition of segregated interstate vehicles and facilities.  5. Television cameras captured the severe mistreatment of civil rights activists during a protest in Birmingham, Alabama; American households viewed the spectacle on the evening news.

6. In what black leaders hailed as the “Second Emancipation Proclamation,” Kennedy promised major legislation banning discrimination in public accommodations.

7. Medgar Evers, the president of the Mississippi chapter of the NAACP, was shot and killed the night of Kennedy’s televised speech.

8. A massive civil rights march on Washington in 1963 culminated in a memorable speech by Martin Luther King Jr.; King won the Nobel Peace Prize in 1964 for his leadership.  9. Some civil rights activists were more radical than King; during the next few years, there were conflicts among the black activists over tactics and goals that were to transform the movement.

10. Southern senators blocked the civil rights legislation, and there was an outbreak of violence by white extremists; in Birmingham, four black Sunday school students were killed.

E. The Kennedy Assassination

1. On November 22, 1963, in Dallas, Texas, President Kennedy was assassinated by Lee Harvey Oswald; Lyndon Johnson was sworn in as president.  2. Kennedy’s youthful image, the trauma of his assassination, and the sense that Americans had been robbed of a promising leader contributed to a powerful mystique that continues today.

IV. Lyndon B. Johnson and the Great Society A. The Momentum for Civil Rights 1. Johnson won the 1964 election in a landslide and used his energy and genius for compromise to bring to fruition many of Kennedy’s stalled programs as well as many of his own.  2. The Civil Rights Act passed in June 1964; Title VII outlawed discrimination in employment on the basis of race, religion, national origin, or sex.

3. The Civil Rights Act forced desegregation of public facilities throughout the South, yet obstacles to black voting remained.

4. A civil rights campaign known as Freedom Summer established freedom schools, conducted a voter registration drive, and organized the Mississippi Freedom Democratic Party.

5. The reaction of white southerners to Freedom Summer was swift and violent; fifteen civil rights workers were murdered, and only 1,200 black voters were registered.

6. Civil rights activists near Selma, Alabama, were seen on the news being attacked by white authorities;

Johnson redoubled his efforts to get pending voting-rights legislation passed.  7. The Voting Rights Act of 1965 suspended the literacy tests and other measures most southern states used to prevent blacks from registering to vote.

8. The Twenty-fourth Amendment’s outlawing of the federal poll tax, combined with the Voting Rights Act, allowed millions of blacks to register to vote for the first time.

B. Enacting the Liberal Agenda

1. When Johnson beat out Republican senator Barry Goldwater for the presidency in 1964, he achieved one of the largest margins in history:

61.1 percent of the popular vote.

2. Johnson used this mandate not only to promote the civil rights agenda but also to bring to fruition what he called “The Great Society.” 3. The Elementary and Secondary Education Act helped to benefit impoverished children; the Higher Education Act provided the first federal scholarships for college students.

4. Federal health insurance legislation was enacted; the result was Medicare for the elderly and Medicaid for the poor.

5. The National Endowment for the Arts and the National Endowment for the Humanities supported artists and historians in their efforts to understand and interpret the nation’s cultural and historical heritage.

6. At the insistence of his wife, Lady Bird, President Johnson promoted the Highway Beautification Act of 1965.

7. Great Society programs emphasized quality of life: the problems of “vanishing beauty,”“increasing ugliness,” and shrinking open space and the effects of pollution, noise, and blight.  8. Liberal Democrats brought about significant changes in immigration policy with the passage of the Immigration Act of 1965, which abandoned the quota system of the 1920s.  9. The “War on Poverty” expanded longestablished social insurance programs, welfare programs (like Aid to Families with Dependent Children and Food Stamps), and public works programs.

10. The Office of Economic Opportunity created programs such as Head Start, the Job Corps, Upward Bound,Volunteers in Service to America, and the Community Action Program.

11. The Johnson administration put issues of poverty, justice, and access at the center of national political life, and it expanded the federal government’s role in protecting citizens’ welfare.  12. The political necessity of bowing to pressure from various interest groups hampered Great Society programs; another problem was limited funding.

13. Democratic support for further governmental activism was hindered by a growing conservative backlash against the expansion of civil rights and social welfare programs.

14. After 1965 the Vietnam War siphoned funding away from domestic programs; in 1966 the government spent $22 billion on the war and only $1.2 billion on the War on Poverty.