The Affluent Society - In Depth Notes

Chapter 26: The Affluent Society

• Overview

  • John Kenneth Galbraith's analysis of economic inequality due to consumerism in post-WWII America.

  • The U.S. economy experienced significant growth after WWII, fostering a culture of consumerism.

I. The Rise of the Suburbs

• Pre-WWII challenges: high rates of foreclosures and mortgage defaults.

• Creation of the Home Owners’ Loan Corporation (HOLC) through the New Deal, facilitating home ownership via amortized mortgages.

• Federal Housing Administration (FHA):

  • Insured mortgages, reducing risk for lenders.

  • Lenders offered lower rates for longer terms (20-30 years).

• William Levitt:

  • Initiated construction of Levittowns, affordable single-family homes, starting in 1946 in Long Island, NY.

  • Contributed to suburban population growth:

  • 19.5% suburb population in 1940 to 62% in 1960.

  • Suburban communities with over 10,000 increased by 22.1% between 1940-1950.

  • Planned communities surged by 126.1%.

  • By 1970, suburbs housed 74 million, with 83% of the population growth in suburban areas.

II. Consumerism Grows

• Factors:

  • Increasing wages, savings from wartime, lifting of restrictions led to a surge in spending.

  • Transition from wartime production to consumer goods, including appliances and automobiles.

  • Credit availability enhanced consumer spending via credit cards.

III. Politics and Ideology of the Affluent Society

• Eisenhower Era:

  • Republican revival with Eisenhower's presidency, promising a change post-Truman era.

  • Eisenhower emphasizes moderation in policies:

  • Described as “conservative when it comes to money, liberal when it comes to human beings.”

  • Focused on limited government spending with some expansions of existing programs.

  • Federal Highway Act: Introduced a system of interstates to enhance connectivity.

IV. Education and Civil Rights Movement

• The struggle for civil rights escalated:

  • Brown v. Board of Education: New precedent struck down segregation, commencing desegregation.

  • Eisenhower's response:

  • Deployed troops to enforce school integration in Little Rock, Arkansas.

• Montgomery Bus Boycott: A critical event spearheaded by African Americans demanding civil rights.

V. Social Programs and the Space Race

• Eisenhower's social programs expanded:

  • Social Security extended to millions, increased minimum wage, established the Department of Health, Education, and Welfare (HEW).

• Space Race:

  • U.S. and Soviet Union competed in space exploration; triggered by the launch of Sputnik.

  • Formation of NASA to manage the U.S. space program and the subsequent Mercury Project aimed at human space travel.

VI. Economic Dynamics and Culture in the 1950s

• Economic boom and prosperity characterized this period:

  • Significant GDP growth attributed to military spending and technology advancements.

  • Standard of living improved markedly; confidence among consumers survived recession threats.

• Baby Boom: Population surged; influenced by post-war optimism.

  • Suburban expansions supported by increased car dependency.

• Rise of the consumer society:

  • Shift towards mass advertising and consumer goods (e.g., televisions, washing machines).

  • Emergence of notable products and social fads (hula hoops, rock n' roll, etc.).

VII. The Dissenting Voices

• Growing awareness of poverty amidst affluence:

  • Over 20% of Americans lived in poverty with significant disparities in wealth.

  • Urban migration resulted in ‘white flight’ and the creation of ghettos.

• The Beat Generation: A cultural pushback symbolized by writers critiquing mainstream American values (Jack Kerouac, Allen Ginsberg).

VIII. Conclusion

• Postwar America: A time of unprecedented promise with a burgeoning civil rights movement and notable economic growth.

• However, stark social disparities persisted, highlighting an affluent society that overlooked significant segmental hardships.