Economic Policy

Another component of Eisenhower’s “New Look” policy included long term changes he wanted to implement in the United States economy.  One of his main issues was that of reducing expeditures of the federal government.  Eisenhower wanted to reduce Truman’s request for the fiscal year beginning in 1953.  One of Eisenhower’s main tactics in going about this was the reduction in military spending.  Although the military was an important aspect of the United States at the time, Eisenhower felt that overspending of national defense was a waste and a self-defeating stimulus to inflation (A Republican Presidency Takes Hold).  The solution to this problem was known as massive retaliation, in which the United States was prepared to use nuclear weapns in the case of an attack.  Nuclear weapons were actually a more effiecient use of money than was training the military.

Eisenhower’s budget for 1954 reduced former president Tuman’s proposed expenditures by $5 billion and he cut the $10 billion defecit nearly in half.  Throughout the rest of the 1950’s the average life style of the American increased.  One reason for this was the transition of more people from urban areas to the suburbs.  Over the decade, the housing supply increased 27% (1950s Economics).

Also under Eisenhower’s presidency, he decided against any government organized health insurance and also refused to allow tax cuts.  His goal from this was to gain economic stability.  Throughout his eight years in office, the economy grow at an average of 2.4% each year (The US Economy from Eisenhower to Carter).


(Source: Cost, Jay)

Eisenhower was moderately successful in the field of economic policy.  Although he had few substantial economic improvements, his presidency did not cause a negative impact on the economy, which is more than many presidents can say.  Also, unemployment rates and inflation rates remained low throughout most of his term.  Life styles improved for most American families throughout Eisenhower’s presidency.


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