1. Describe some of the reasons why the economy dipped in 1946.
2. Why did President Truman oppose the union strikes of 1946? What did Truman want to
do with the strikers in 1946?
3. Why did the US economy start to strengthen in 1947? What was the nickname given to
the US economy by economist John Kenneth Gilbraith?

The economy in 1946 faced challenges due to demobilization and labor strikes, with Truman opposing strikes. The US economy rebounded in 1947 with aid and production increases, leading to an era of affluence.

Explanation:

Reasons for the economy dip in 1946:

Rapid demobilization after WWII led to a decrease in wartime production.
Government spending cuts caused economic instability.
Labor strikes disrupted economic activity.

President Truman's response to union strikes: Truman opposed the strikes and wanted the authority to draft striking workers into the army to prevent further disruptions.

US economy strengthening in 1947: The Marshall Plan aid to Europe and increased production boosted the economy. Economist John Kenneth Galbraith nicknamed this the "Affluent Society" era.

Learn more about Post-WWII US economic challenges and policies here:

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