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Economicss Of Eisenhower Essay, Research Paper

In November of 1952 General Dwight D. Eisenhower was elected to the office of

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President of the United States. It was the first clip a Republican was elected since

Herbert Hoover in 1928. The Eisenhower disposal started at a instead awkward

clip, both politically and economically. First of all there was a war on. The Korean War

had begun in June of 1950 and was still engaging. As was usual for wartime the state

was economically comfortable. However, the war had caused President Truman to

abandon his former restraints on authorities disbursement. The sum of money being

spent on defence skyrocketed to provide the military personnels in Korea with the supplies they needed.

This caused the federal shortage to increase dramatically ( Pach and Richardson, 53 ) .

Another bequest leftover from the Truman yearss was that of the Fair Deal domestic

plan. Although Truman found much resistance to his plans in Congress he

managed to acquire several things done. Such as a public lodging measure, an enlargement of societal

security coverage, and increased minimal rewards. The Republican party was non in favour

of the bulk of this statute law. Therefore when Eisenhower was elected they instantly

made programs for cutbacks in the disbursement on these plans. Unfortunately for them the

freshly elected president was non opposed to the plans Truman had began and

improved upon. Over the class of his disposal Eisenhower frequently did non keep the

same sentiments as some of the members of his party.

As the Chief Economic adviser to the President of the United States there are

many different issues which I must see. These issues are both big and little,

foreign and domestic, and impact the upper, in-between, and lower categories. At this point in

clip there are several of import concerns which I have. The Korean War is stoping and

this is traveling to hold a profound affect on the economic system of the United States. During the

war the state was comfortable but subsequently there is ever a high hazard of increased

rising prices and an addition in unemployment. These conditions have the ability to do a

recession. Now that an cease-fire has been reached in Korea, a recession is get downing to

occur ( Pach and Richardson, 54 ) .

I believe that the President s head concern should non be to do an immediate

and fast acting Restoration of the general economic system. The jobs of the federal shortage

and the recession must wait until the more of import jobs are dealt with. The

job at manus is the lifting rate of unemployment. This job must be dealt with

instantly with strong actions. I suggest implementing federal public works undertakings

as a manner of making occupations without burthening the authorities with extra disbursals.

Ideas for these public works undertakings are: the building of a Saint Lawrence Seaway,

and an Interstate Highway System. This system would be a monolithic project and

would be one of the largest building undertakings of all clip but it would make many occupations

for Americans who are no longer employed by the war attempt ( Branyan and Larsen, 251 ) .

The Republican party has non been happy with the states economic policies for

rather some clip. These are the policies of the Democrats, and more specifically those of

the New Deal and the Fair Deal. These societal plans, such as societal security and

public assistance have been a drain on the federal budget for rather some clip. Republicans feel

that the clip has come to get down cutting back the sum of money being spent on such

plans or at least restrict the annual additions. However, there are times when a

political leader must do their ain determinations and non establish the manner they run their

disposal on the influences from their party. It would be better for the economic

wellness of the state to keep all of the societal plans started under the Roosevelt and

Truman disposals. While this would usually present a job to the federal budget

it will non due to current conditions. The sum of money once spent on national

security, intending military and defence disbursement has been badly reduced ( Albertson,

139 ) . This frees up a big sum of money to be used for other ends. These ends

should be those of bettering the criterion of life for each and every American and non

the immediate decrease of revenue enhancements, a end which many members of the Republican party

would wish to see pursued. The plans initiated in the policies of the New Deal and

Fair Deal should non merely be maintained, alternatively they should be expanded upon. I

suggest that the Social Security system be amended to include benefits for freelance

husbandmans and handicapped workers.

While there is much work to be done on economic policy domestically, the

foreign policy must be dealt with every bit good. One of the most of import facets of foreign

economic policy is that of trade. There are different ways for a authorities to pass

trade. It can be done from a protectionist place or from a more free trade place. In a

protectionist place the authorities is taking to guarantee American concerns and at the

same clip diminish the sum of gross revenues of foreign concern. The fastest method for

carry throughing this undertaking is to increase duties, as in revenue enhancements on foreign goods coming in to the

state. When these revenue enhancements are high it costs the foreign companies much more to transport

goods into the United States. In order to counterbalance these costs the companies must

increase the monetary value of their goods. When people in American see foreign goods for

hideous monetary values and so they see American goods for normal monetary values than they are traveling

to purchase American merchandises. Unfortunately, this is non the

merely consequence of a protectionist

policy. Foreign states frequently get upset at the addition in American duties and respond by

increasing their ain duties on American goods. This weakens the gross revenues of American

goods in foreign states. In order for the United States to hold a favourable balance of

trade so they must hold strong exports. This is where a free trade policy comes in. In a

free trade policy, duties are lowered, leting more goods to be imported to the United

States. Foreign nations will see the lowered duties in the United States and respond by

take downing their duties on American goods. This will increase the overall trade between the

United States and states abroad.

The Republican party would wish to see a return to more protectionist policies.

However, I feel it should be the occupation of the President to steer the Grand Old Party off

from such a point of view ( Bonker, 58 ) . Alternatively of seeking to increase duties, President

Eisenhower should try to regenerate the Reciprocal Trade Act so that he will hold the

power to take down duties by every bit much as 15 per centum. With the duties lowered foreign

states will react favourably. This will bring forth more commercialism and be good to

the United States balance of trade. Another step that should be taken in order to

bolster American trading and abroad investings is to diminish the corporate revenue enhancements to a

per centum much lower than the domestic rate on income earned through foreign subordinates

of U.S. concerns. Trade is indispensable to get the better of the dollar spread that prevented foreign

selling of United States goods ( Melanson and Mayers, 159 ) .

There are many economic issues which face the state at this clip. A recovery

from World War II and the Korean War, a recession, a alteration in the political party of the

president, and several other issues. Thus this must be a clip of strong economic

leading. The policies made and legislative assembly passed must maneuver the United States through

this evident storm and give the state a opportunity to rest from the hecticness of the first

half of the century. For in that half a century the state faced World War I, World War

II, and the Great Depression. Now is a clip when the state must rest up and recover its

strength for the most assuredly difficult times to come. During President Eisenhower s term

in office one word must depict the economic policy, stableness. The state does non

demand hazardous ventures and bold new thoughts, the state needs to keep on to its old

economic point of views. The lone new policies implemented should be those to battle

new issues that arise during the Eisenhower presidential term. Thus all of the economic advice

I have given the President Eisenhower serves one chief intent. That is to guarantee the

economic stableness and prosperity of the United States of America.

In 1953 I took office and began to function as President Eisenhower s head

economic adviser. I rapidly assessed the economic stature of the state and began to

program my policies for the hereafter. I was cognizant of what I wanted to carry through and how I

planned to accomplish my ends. I advised the President on many key and of import

economic issues of our clip. When I think back I must decode whether or non the

policies I implemented were successful. At the clip I thought what I was making was right

but as the stating goes hindsight is twenty-twenty and I can merely genuinely state if I was

successful by looking back upon my work and taking an overview of it.

As I look back upon my clip in office I come to a really distinguishable decision. I

believe that I was successful in accomplishing the economic ends which I set out for.

Through my suggested policies sing societal security I made Americans more secure

in their occupations and their authorities. Through my suggested policies sing plants

plans I created countless occupations for Americans who urgently needed them, particularly

in a clip straight after a major war. In respects to foreign economic policy I was besides really

successful. The trading of the United States was dining. U.S. merchandises were being

produced and sold around the universe. By the 1956 financial twelvemonth the Treasury showed an

impressive excess ( Pach and Richardson, 55 ) . The success of the state s economic system

would turn out to be imperative for the clip. As the state entered the Cold War the focal point

needed to be placed on the Soviet Union, national security, and defence. The economic system

had to be stable because we could non afford to worry about its well being in a clip of

such political discord. The United States had really specific demands during the 1950ss. The

state needed a strong military to vie with the Soviet Union, a strong authorities

to pass, and a strong economic system to endorse it all up. The policies I helped to implement

were the 1s that met the demands of the times. After a war a state needs stableness and my

policies and plans provided this stableness which allowed the United States to

adequately retrieve from World War II and the Korean War so that the state would be

able to contend future conflicts.

Plants Cited List

Albertson, Dean. Eisenhower As President. New York: Hill and Wang, 1963

Ambrose, Stephen E. Eisenhower. New York: Simon and Schuster, 1970

Bonker, Don. America s Trade Crisis. Boston: Houghton Mifflin Company, 1988

Branyan, Robert L. , Larsen, Lawrence H. The Eisenhower Administration 1953-1961.

New York: Random House, 1971

Melanson, Richard A. , Mayers, David. Reassessing Eisenhower American Foreign

Policy in the fiftiess. Urbana and Chicago: University of Illinois Press, 1987

Pach, Chester J. Jr. , Richardson, Elmo. The Presidency of Dwight D. Eisenhower.

Sunflower states: University Press of Kansas, 1991