The economy in the 1950s and the consumer society

What was Eisenhower's view of the individual in his 1956 campaign broadcast

There is no such thing as a 'common' man; everyone is an individual with rights, privileges, and responsibilities.

What basic right did Eisenhower emphasise regarding children

The right to bring children into the world with a secure future, free from staggering debt or overwhelming inflation.

What did Eisenhower believe people were entitled to regarding jobs and taxes

A steady job and not having to surrender the major part of their earnings back to the government in taxes.

How was Eisenhower described in terms of his outlook on the future

As a man who looks toward tomorrow with confidence and excitement.

Why was Eisenhower considered a lucky president economically

The Cold War tension eased, Stalin died, and the US economy transitioned from war dependence to booming.

What was the US GDP in 1950 and by the end of Eisenhower's second term in 1960

$355 billion in 1950 and $488 billion in 1960.

By how much did the American economy grow during the 1950s

By 37 per cent.

How much more purchasing power did the typical American family have by 1960

30 per cent more than at the beginning of the decade.

What kept inflation low during Eisenhower's presidency

His obsession with balancing the federal budget, low taxes, and controlled public spending.

What natural resource helped keep US industry running during the 1950s

Cheap oil from US wells.

How did the slow recovery of Europe and Asia affect the US economy

It helped the US remain the major supplier of manufactured goods worldwide.

How did Eisenhower use his status as a former general in relation to the economy

To reassure Americans there was no need for excessive increases in the defence budget.

What is Gross Domestic Product (GDP)

The total value of all goods and services produced within a country, usually measured over a year.

What is the difference between macroeconomics and microeconomics

Macroeconomics studies the whole economy, microeconomics looks at individuals or small groups.

What does per capita income measure

The amount of money an individual earns in a year.

What helped encourage the Eisenhower economic boom

The maturing of war bonds, government spending on the GI Bill and the military, and business promoting a consumer lifestyle.

What role did the GI Bill play in economic growth

It boosted housebuilding and increased the number of educated people in the population.

How much did the military sector receive annually during the Eisenhower years

$40 billion annually.

What encouraged the US military buildup during this period

Truman's decision to follow Kennan's advice that a strong military would discourage Soviet expansion.

What was most significant in promoting economic growth during the Eisenhower boom

The role of business in promoting a consumer lifestyle.

How did the media and advertising contribute to economic growth

They created desire for consumer goods and glamour through newspapers, radio, and television advertising.

How much did advertising spending increase between 1950 and 1963

From $6 billion annually in 1950 to more than $13 billion by 1963.

What did Robert Sarnoff say about advertising's effect on the economy

"Advertising is the foot on the accelerator, the hand on the throttle."

How did businesses shift their production after the war

They converted military equipment plants to produce consumer goods in large numbers.

What role did television play in consumerism during the 1950s

It created a captive market for advertisers to sell products to a growing population with more leisure time.

Who was Edward Bernays

A public relations expert whose work advertisers built on to sell products.

How did politicians begin using advertising techniques in the 1950s

They used TV adverts, such as Eisenhower's 1952 'Eisenhower Answers America' campaign ads.

What was innovative about Eisenhower's 1952 campaign TV ads

Instead of full speeches, he responded directly to questions from ordinary people.

How did the 'Eisenhower Answers America' campaign affect Eisenhower's public image

It helped establish him as a straight talker, in touch with America.

Who was Edward Bernays

A journalist and government information worker during WWI who pioneered 'The Engineering of Consent' and founded the first Public Relations consultancy.

What was Edward Bernays' preferred term for propaganda

Public Relations.

What did Eisenhower focus on regarding the federal budget

Balancing the federal budget.

How were American consumers encouraged to spend despite Eisenhower's focus on thrift

Through the availability of cheap credit.

Which agencies offered low-interest loans to help families buy homes

The Federal Housing Administration and the Veteran's Administration.

What was Levittown

A mass-produced suburban housing development in New York for 80,000 families costing around $8000 per home.

What discriminatory practice did Levittown operate

Restricted covenants preventing African-Americans from buying property.

What was the first credit card and when was it launched

The Diner's Club card, launched in 1950.

Which credit card followed Diner's Club and when

American Express, launched in 1958.

How did private debt change from 1950 to 1960

It more than doubled from $104.8 billion to $263.3 billion.

What consumer goods did Americans borrow money to buy

Cars, refrigerators, televisions, and vacuum cleaners.

What effect did the growth in consumer debt have

It further stimulated the economy and created manufacturing jobs.

What was the baby boom

A population increase from 1946 to 1959 adding millions of new Americans.

How did the baby boom affect the economy

It caused an explosion in sales of baby food, toys, nappies, and related products.

How did teenagers emerge economically in the 1950s

As a powerful economic force with significant spending on food, cosmetics, and entertainment.

What did Life magazine call teenagers in 1959

A '$10 billion power'.

By 1960, what proportion of the world's cars and telephones did Americans own

Nearly half.

What percentage of American families had a television by 1960

90 per cent.

How many weeks of paid holidays did virtually all American workers enjoy by 1960

At least two weeks.

What housing trend symbolised the growing prosperity and 'American Dream'

The growth of the suburbs.

What helped make access to the suburbs possible

The boom in car sales.

How did domestic gasoline production affect car sales

It made gasoline cheap, boosting sales from 5.1 million in 1949 to 7.9 million by 1955.

What was the purpose of Eisenhower's Interstate Highway Act of 1956

To stimulate demand and jobs, and serve as a civilian evacuation aid in case of nuclear attack.

How much federal budget was allocated to highway construction under the Interstate Highway Act

$26 billion.

What was the global status of the American standard of living by 1959

Unparalleled in the rest of the world.

What was promoted as part of Cold War propaganda related to prosperity

The American Dream.

What was the 'Kitchen Debate'

An impromptu debate between Nixon and Khrushchev in Moscow in 1959 about capitalism versus communism.

Where did the 'Kitchen Debate' take place

In a model American kitchen at the American National Exhibition in Moscow.

What criticism did the Soviet news agency Pravda make about the exhibition

That it was unrepresentative of the average American worker.

What did Nixon say about the model house price and affordability

The house costs $14,000 and most Americans can buy homes between $10,000 and $15,000; a steelworker earning $3 an hour can afford it.

How did Khrushchev respond to Nixon's housing claims

He said Soviet steelworkers could afford such houses, accused American houses of being cheaply built to be replaced quickly, and doubted the accuracy of the exhibit.

According to JK Galbraith in The Affluent Society, what happens when public services lag behind private consumption

Private goods dominate while public services suffer, leading to social disorder.

What pressure does a society that values production put on families, according to Galbraith

To have as many wage earners as possible.

What consequence does having both parents working have on public services

It increases the burden on public services, as children become a community charge for much of the time.

What warning does Galbraith give if public services do not keep pace with private consumption

It will cause disorder.

What is the tertiary sector

the services sector of the economy where jobs are in finance, government, the media, hospitality, education and retail as opposed to primary (farming, etc.) and secondary (manufacturing) sectors.

What does 'homogenising' mean in the context of 1950s America

A process making things the same for wider groups; TV and advertising sold the same products and showed the same programmes nationwide, reducing regional differences.

How did automation affect the economy and leisure in the 1950s

It increased the tertiary sector and demand for entertainment grew.

What happened to cinema attendance in the 1950s

It began a slow decline lasting until the mid-1980s.

Which company bucked the trend of declining cinema attendance and opened the first theme park in 1955

Disney.

How did Disney contribute to the consumer culture

Through souvenirs and products contributing to the growth of toys and games, and by homogenising American experiences.

What aspects of American life became homogenised during the 1950s

Housing, products, shopping, eating, and listening to music.

What was the first climate-controlled indoor shopping mall, and when did it open

Southdale Center in Edina, Minnesota, October 1956.

What features made the Southdale Center notable

Covered access to 72 stores, 5200 parking spaces, restaurants, and childcare facilities.

How did out-of-town malls contribute to fast food growth

They encouraged drive-through dining popularised by brands like McDonald's and Burger King.

Who pioneered the fast food industry in the 1920s

White Castle.

Who identified McDonald's drive-through potential and expanded it into a franchise

Ray Kroc.

When did McDonald's have 228 restaurants and what happened to the original McDonald brothers

By 1961; Ray Kroc bought them out for $2.7 million.

How is the 1950s American entertainment industry described compared to today

Very tame by today's standards.

Name some 1950s entertainers who laid the groundwork for the 1960s youth rebellion

Jackson Pollock, Jack Kerouac, Allen Ginsberg, Bob Dylan, James Dean, Marlon Brando.

What cultural shift did baby boomers experience as they became teenagers in the 1960s

A sense of injustice and anger leading to youth rebellion.

Who was Michael Harrington (1928-89)

Yale Law graduate, atheist campaigner, socialist, political science professor. His book The Other America influenced Kennedy and Johnson's anti-poverty programmes. Called "the only responsible radical" by Arthur Schlesinger.

What did The Other America reveal about 1950s society

That 25% of Americans lived in poverty (under $3000/year for a family of four), often invisible amid prosperity.

What economic downturns occurred under Eisenhower

Recessions in 1954 and 1958; the latter saw 5 million unemployed and a 14% fall in production.

How did Kennedy use the 1958 recession in 1960

He exploited it in his campaign to criticise Republican financial management.

What was average unemployment under Eisenhower

Generally low, reaching 4.5% in 1957.

What was the average inflation rate during Eisenhower's presidency

2%.

How did Eisenhower approach budget management

He focused on balancing the budget, achieving surpluses in 1956, 1957, and 1960.

How did Eisenhower reduce federal involvement in the economy

He cut TVA subsidies from $185m (1952) to $12m (1960), sold power plants, and gave drilling revenues to states.

What hindered Eisenhower's spending cuts

Rising military and space race expenditures led to an 11% increase in government spending overall.

What agricultural issue emerged in the 1950s

Increased productivity led to falling food prices, requiring $5.1bn in subsidies in 1960 (up from $1bn in 1951).

Why were farm subsidies acceptable even to Republicans

The Great Depression had shown the dangers of price crashes, justifying government intervention.

Who benefited from the consumer boom

Teenagers (disposable income), middle class (suburban growth), and the wealthy (investment opportunities).

Name wealthy individuals and entrepreneurs who prospered in the 1950s

Gettys, Rockefellers, Mellons; Ray Kroc (fast food), Lucille Ball (media), Sam Walton (retail).

Which groups were left behind by the boom

Women (trapped in suburban domesticity), the elderly (isolated from extended families), and ethnic minorities (facing racism and job insecurity).

Why did ethnic minorities suffer economically during the boom

Automation reduced manual jobs, and racist hiring meant they were often the first to be fired.

Define subsidy

Money granted by the government to keep the price of a commodity or service low.