1948年,霍爾因為“陰謀教唆並支持用暴力和顛覆美國政府”被判入獄,而實質是因為他擁護馬克思主義的思想而被起訴。他起初被服刑五年。當他被釋放後,他升任美國共產黨的秘書長。當最高法院開始支持史密斯法案(The Smith Act),霍爾和另外三人從保釋中逃走並且轉入地下。霍爾去往莫斯科的計畫以他1951年10月在墨西哥城的被捕而告終。他又被判三年服刑。在監獄裡他分發傳單並且進行舉重訓練。Gus Hall入獄照片
在詹森領導的攻擊狂潮之下,妄想戰時經濟繁榮的那些幻想,如“既有槍又有黃油(Gun and butter)”, “偉大新社會”的口號一般紛紛破滅。而人民為戰爭背負了沉重貸款,預算,國債包袱。聯邦政府預算中原計畫的用來抵抗通貨膨脹的6%的)超額累進所得稅的收入早已用於填補戰爭開支。重新建立的7%企業所得稅只是刺激了軍事工業的迅速擴展。暴漲的物價,租稅吞噬著工薪階層的每一分收入,使百萬人民在最低生存標準線下掙扎。戰爭需求加速了壟斷,沉重打擊非壟斷的小企業。僅僅占據基礎設施57%的區區二百多家軍事工業如今卻在掌握國家經濟各方面的命脈。
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