Post WWII part 1

The New Deal and the Great Depression

• The New Deal did not completely end the Great Depression, but set the groundwork for subsequent recovery.

• Massive increase in government spending during World War II stimulated the economy.

  • Billions of dollars invested in military equipment, supplies, and infrastructure.

  • The federal government encouraged private industries to switch to wartime production.

Economic Growth During World War II

• U.S. manufacturing doubled from 1939 to 1944 due to increased demand from the war effort.

• The agriculture sector rebounded as there was high demand to feed troops and supply allies.

• Achieved near full employment; approximately 15 million Americans served in various roles related to the war effort, equating to about 11% of the total U.S. population.

• 17 million new jobs were created during the war to support wartime production.

Government Spending and Employment

• The U.S. experienced a significant increase in federal spending, especially compared to prior periods.

  • Expanded government intervention aimed at economic recovery contrasts with previous low spending periods following World War I.

  • Wartime agencies were developed from New Deal agencies, expanding control of industrial production.

• Government-led programs including housing developments were initiated to accommodate the influx of workers.

Social Changes and Women's Roles

• Increased employment opportunities arose for women and minorities, historically excluded from skilled labor positions.

• Iconic figures like Rosie the Riveter symbolized women’s contributions to the workforce, especially in manufacturing.

Transition to Keynesian Economic Policies

• Shift from a laissez-faire approach to a Keynesian economic model due to lessons learned from the Great Depression.

  • Government is seen as necessary in managing economic downturns and stimulating demand through increased spending and employment initiatives.

  • New Deal policies created a foundation for a more robust government role in the economy.

Labor Protections and Rising Inequality

• The establishment of strong labor protections and union growth allowed blue-collar workers to achieve middle-class status.

• Real income growth occurred, with wages increasing beyond simply keeping pace with inflation.

• Higher marginal tax rates on the wealthiest individuals allowed for a more equitable distribution of wealth.

  • Top marginal tax rates reached as high as 91% in the post-war era.

Expanding Social Welfare Programs

• Expansion of social welfare programs such as Social Security, Medicare, and Medicaid further aimed to assist Americans in need.

• These programs contrast sharply with contemporary attitudes toward social welfare and government spending.

The Economic Landscape Post-World War II

• The end of world conflicts positioned the U.S. as the leading economic power, as other nations rebuilt from war.

• Between 1950 and 1970, the suburban population in the U.S. doubled, reflecting a shift in living patterns.

• Initiatives like the GI Bill facilitated home ownership and education for veterans, albeit with disparities affecting minority groups.

• Consumer culture flourished as Americans, having saved during the war, were ready to spend, resulting in economic growth and a rise in the American standard of living.

Social Movements and Growing Awareness

• Economic prosperity contributed to social movements as Americans began to advocate for civil rights and equality, inspired by newfound upward mobility.

• Increased levels of education allowed more citizens to become aware of social inequalities, facilitated activism across various demographic groups.