ABSTRACT
On January 20, 1957, Eisenhower was inaugurated for a second term as president. With a landslide victory in the 1956 presidential election and a rating in the opinion polls of nearly 80 per cent, he seemed to be in a very strong position. Eisenhower worked constantly to restrain government activities and government costs, but he felt that it was necessary to demonstrate a degree of flexibility in his thinking. The launch of the Soviet satellite, Sputnik, in October, 1957, dealt a severe blow to American self-confidence and raised demands for large increases in defence spending, which would upset his budget plans. Eisenhower was well aware of the need for a Republican president to avoid being tarred as another Herbert Hoover in a time of deep recession. In February, 1958, Eisenhower announced several anti-recession measures, such as an increase in Federal highway expenditure, an acceleration of defence contract awards and the modernisation of post offices.
