United States

Eisenhower had promised to end the Korean War, hold the line on government spending, balance the budget, abolish inflation, and reform the Republican Party. On July 27, 1953, an armistice was signed in Korea freezing the status quo. By cutting defense spending while taxes remained fairly high, and by keeping a tight rein on credit, Eisenhower was able to avoid serious deficits, abolish inflation, and, despite several small recessions, encourage steady economic growth that made Americans more prosperous than they had ever been before. Eisenhower also supported public works and a modest expansion of government social programs. In 1954 the St. Lawrence Seaway Development Corporation was established by Congress. In 1956 Congress authorized the National System of Interstate and Defense Highways, Eisenhower’s pet project and the largest public works program in history. Amendments to the Social Security Act in 1954 and 1956 extended benefits to millions not previously covered. Thus, Eisenhower achieved all but the last of his goals, and even in that he was at least partially successful. At first Eisenhower did little to check the Red Scare, but in 1954 Senator McCarthy unwisely began to investigate the administration and the U.S. Army. This led to a full-scale investigation of McCarthy’s own activities, and on December 2 the Senate, with Eisenhower playing a behind-the-scenes role, formally censured McCarthy for abusing his colleagues. McCarthy soon lost all influence, and his fall did much to remove the poison that had infected American politics. In short, Eisenhower was so successful in restoring tranquillity that, by the end of his first term, some people were complaining that life had become too dull.

Tensions eased in foreign affairs as well. On March 5, 1953, Joseph Stalin died, opening the door to better relations with the Soviet Union. In 1955 the Soviets agreed to end the four-power occupation of Austria, and in that July Eisenhower met in Geneva with the new Soviet leader, Nikita S. Khrushchev, for talks that were friendly though inconclusive.

As for military policy, Eisenhower instituted the “New Look,” which entailed reducing the army from 1,500,000 men in 1953 to 900,000 in 1960. The navy experienced smaller reductions, while air force expenditures rose. Eisenhower was primarily interested in deterring a nuclear attack and to that end promoted expensive developments in nuclear weaponry and long-range missiles.

Eisenhower’s second term

Despite suffering a heart attack in 1955 and a case of ileitis that required surgery the next year, Eisenhower stood for reelection in 1956. His opponent was once again Stevenson. Two world crises dominated the campaign. On October 23, Hungarians revolted against communist rule, an uprising that was swiftly crushed by Red Army tanks. On October 29, Israel invaded Egypt, supported by British and French forces looking to regain control of the Suez Canal and, perhaps, to destroy Egypt’s president, Gamal Abdel Nasser, who had nationalized the canal in July. Eisenhower handled both crises deftly, forcing the invaders to withdraw from Egypt and preventing events in Hungary from triggering a confrontation between the superpowers. Owing in part to these crises, Eisenhower carried all but seven states in the election. It was a purely personal victory, however, for the Democrats retained control of both houses of Congress.

Lebanon; United States ArmyAmerican soldiers patrolling streets of a village in Lebanon, July 1958.U.S. Army Photo

Domestic issues

Although the Eisenhower administration can, in general, be characterized as a period of growth and prosperity, some problems did begin to arise during the second term. In 1957–58 an economic recession hit and unemployment rose to its highest level since 1941. Labour problems increased in intensity, with some 500,000 steelworkers going on strike for 116 days in 1959. There was even evidence of corruption on the Eisenhower staff. The president remained personally popular, but public discontent was demonstrated in the large majorities gained by the Democrats in the congressional elections of 1958.

Problems associated with postwar population trends also began to be recognized. The U.S. population, which had grown markedly throughout the 1950s, passed 179 million in 1960. Growth was concentrated in the West, and the country became increasingly urbanized as the middle class moved from the cities to new suburban developments. The migration left cities without their tax base but with responsibility for an increasing number of poor residents. It also resulted in a huge increase in commuters, which in turn led to continuing problems of traffic and pollution.