Why and how were the late 1940s and 50s a time of economic prosperity?

Technological innovations in the 40s and 50s

-A development of the manufacturing sector due to development of consumer electronics such as televisions and appliances -Also innovations in communication and transportation, expansion of the highway system, advancements in aviation, allowed enhanced trade and commerce. -Modern appliances reduced the time it took for chores, increased time for leisurely activities, which created a demand for leisure activities -Development of tech --> affordability of tech

Employment Act of 1946

-Enacted by Truman, it committed the federal government to ensuring economic growth and established the Council of Economic Advisors to confer with the president and formulate policies for maintaining employment, production, and purchasing power

The automobile industry

-Exploded, creating millions of jobs and supporting industries -America's standard of living rose sharply and new industries flourished while old ones dwindled -The petroleum business experienced an explosive development and the railroad industry was hard hit by the competition of automobiles. -The development of interstate highways facilitated easier transportation, encouraged suburban living and cars -Automobile was not just a means of transport but also a status symbol and part of the American dream -Manufacturing and maintenance industries grew -Car-centric activities such as drive in theatres and restaurants further embedded the automobile industry

Rise of consumer culture

-From the change of a wartime to peace time economy, the rise of consumer culture was characterized by a significant surge in consumerism, reflecting changes in economic status, social dynamics, and cultural attitude -Driven by increased disposable income -The cessation of wartime production allowed companies to redirect their attention toward consumer goods, which led to an increase in employment, and extra money -As the population of the US rose, so did the the average family income -Also the rise of the middle class due to bills such as the GI bill which allowed for the college education of veterans as well as allowing for them to buy houses -Suburbanization: people moving into suburbs and houses increased sales of appliances as well as cars

The GI Bill

-Law passed in 1944 to help returning veterans buy homes and pay for higher educations -Provided home loans, unemployment benefits, medical care -Government wanted to prevent the economic turmoil that came with demobilization in WW1 -GI Bill was a success that reinvented American higher education, Americans with college degrees doubled, and college curriculums changed from soley liberal arts to many career paths -Many were angry because they believed higher education should have been reserved for the eilite -Since more people were getting loans, the economy boomed a new homes were financed

Expansion of suburbia

-Low housing costs and the GI bill allowed working class Americans to move to the suburbs and own a home -After the war, more focus was put on the production of houses- -Automobile, housing, highway, fuel industries developed -Promoted car culture

"Boom" in Advertising

-Media such as radio, newspapers, magazines, catalogues remained vital ad conduits, but TV quickly became one of the greatest forms of advertising, the development of slogans -Throughout the decade, advertising expenditures increased to unprecedented levels. -TV allowed advertisers to reach new audiences and different niches -Created a demand for new products by introducing them as essential components of the modern lifestyle, appliances, clothing, makeup, etc -Association with the American dream, happy, prosperous families surrounded by modern appliances, cars, and other symbols of wealth and success, the consumer would want to have those things to be part of the American dream

Workforce dynamics

-Now that there were technological advancements in various industries, demands for skilled labor rose significantly in various industries -Led to increased emphasis on vocational training, a college education to prepare the workforce for changing of industrial demands -Tech advancements made some traditional jobs obsolete, creating new categories of jobs with emphasis on technical and professional roles

Expansion of credit

-The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future -Allowed for immediate purchases with deferred payment, allowed people to purchase things they wouldn't be able to buy in the first place -Also consumer debt present -Rationing and restraint were limited

Focus on children, household dynamics

-The consumer market increasingly targeted children, also influenced by Baby Boom, with clothing, toys, and entertainment -Home appliances changed domestic duties, more leisure time -Shopping became a leisure activity

Transition from wartime to peacetime economy

-The end of wartime meant that there needed to be a shift from the war-time economy to a peace-time economy, converting weapons facilities to factories and reintegrating men into jobs -When troops were first demobilized there was a period of economic recession and unemployment because of jobs being filled by women and POC -As a result FDR formulated the GI Bill

Union influence

-Unions emerged as powerful entities, negotiating for higher wages, better working conditions, and benefits. -Their influence was most notable in the manufacturing sector. -There was growth in unions during this time, they had a strong presence in the American labour market, ongoing negotiations between labor and management. -Negotiate for better pay, better hours, better benefits -Ex: Strike of hospital workers

Baby Boom

A cohort of individuals born in the United States between 1946 and 1964, which was just after World War II in a time of relative peace and prosperity. -World War 2 caused the birth rate to skyrocket, when soldiers returned from war the GI bill provided benefits that allowed them to do this -Birth rate remained high, men and women had reliable acces to birth control -Promoted a healthy economy, construction of schools and suburbs, more of a demographic to advertise to, pop culture development

Federal Aid Highway Act of 1956

Authorized the construction of the Interstate Highway System -Facilitating easier transportation of goods and people, thus boosting economic activity

Housing Act of 1949

Law authorizing the construction of 810,000 units of government housing. -First significant commitment of the federal government to meet the housing needs of the poor -Urban development

Revenue Act of 1942

Significantly reduced individual income taxes, which contributed to increased consumer spending and savings -Increased amount of money people had to spend on other things

Economic Miracle of 1940-1950

Sources of economic growth: -GDP grew, unemployment lessened, and inflation lowered -Government spending stimulated the growth through public spending in schools, housing, veteran benefits, welfare, military spending -Military spending was the highest during the Korean War, selling of armaments allowed the economy to come to a peak -The baby boom, contributed to increased consumer demand and expanding economic growth -The suburbs also grew extremely quickly, helped stimulate growth in many industries -Privately owned cars --> boom in automobile industry -Demand for new homes -Construction of roads and highways needed to transport from suburbs to cities- Federal Aid Highway Act