topic 7, lesson 5: postwar prosperity

Text 1: Causes and Effects of Prosperity in the 1950s

  • after WWII America experienced its longest period of economic growth

  • millions of defense workers lost their jobs after war ended; 9 million were demobilized

Impact of the GI Bill

  • GI Bill of Rights led to explosive growth in suburbs (offered govt loans to veterans for building homes)

  • 8 million veterans took advantage of the education benefits

A Baby Boom Increases Consumption

  • baby boom bc of the belief that bad times were behind them

  • US population saw its greatest increase during this time

Postwar Inflation

  • prices skyrocketed bc price control and rationing ended & there was postwar rush to buy new goods

Free Enterprise Improves US Standard of Living

  • demand soared postwar and businesses employed more people to produce goods

  • US was producing 50% of the worlds output

  • Americans have highest standard of living bc of free enterprise system

Technological Progress Enhances Productivity

  • use of computers increased, worker productivity improved bc of new tech

Military Spending Supports Growth

  • Increased govt spending boosted economy, federal spending programs (like Marshall Plan) initiated foreign demand for US goods

Text 2: Americans Migrate to the Sunbelt

  • New York baseball teams moving to California reflected postwar trend of the growth of the Sunbelt

Causes of Migration

  • growth of aerospace and electronics and warm climate attracted ppl

  • development of air conditioning made it possible to live in the South

  • Latinos contributed to Sunbelt growth; Cubans escaping Fidel Castro went to Florida, Mexican Americans migrated to urban areas

Effects of Migration on Society and the Environment

  • suburbs and the Sunbelt gained representation in politics

  • environmental concerns like smog, traffic jams, water shortages

Text 3: Innovations and Economic Development

  • postindustrial society as more ppl were employed in service sector (law, retail, banking, etc.

Innovative Computers Drive Economic Growth

  • new workforce had many in information industries

  • by 1960s hotels were using computers for reservations, banks used them to keep track of accounts, etc.

Changes in the Labor Force

  • women in labor force increased to maintain middle class status though remained underpaid

  • new irrigation systems made land in the Southwest fertile

The Role of Entrepreneurs

  • rise of franchises which attracted consumers bc they stressed quality and sameness ex. Holiday Inn Franchise

  • postwar critics complained about the homogeneity of franchises

Entrepreneurs Lead Management Innovations

  • McDonalds became the most successful food organization in history and came to stand for low-priced, standardized-quality food

  • Lauder focused on only selling her products in high-end department stores

American Corporations Go Multinational

  • Coca Cola sold its drinks all over the world, Hollywood movies found eager audiences all over the globe

Effects of Prosperity on Labor

  • AFL-CIO had good deal of political clout w Democratic Party

  • most white-collar workers didn’t join labor unions, scandal tarnished reputation (Teamsters Union specifically)

Text 4: Truman’s Postwar Leadership

  • postwar years saw communist takeovers abroad and a troubled domestic economy

Relationships with Congress and Labor

  • Trade unionists wanted pay increases, workers were going on strike bc employers weren’t meeting labor demands

  • Taft-Harley Act rolled back rights that labor unions gained; Truman vetoed but Congress overrode it

Support for Civil Rights

  • Truman established civil rights committee to investigate race relations

  • Truman made executive order to desegregate the military

Truman Defeats Dewey

  • Southern Democrats upset abt civil rights, created States Rights Party; Wallace upset abt foreign policy, created Progressive Party

  • Truman went on train tour and won slight victory

Consequences of Truman’s Presidency

  • Fair Deal did not win approval in congress

  • Today, many historians applaud Truman for his common sense approach

Text 5: Eisenhower Leads a Thriving Nation

  • Eisenhower won over both Democrats and Republicans

  • Eisenhower hadn’t held political office prior but the nation had faith

  • Eisenhower charted middle course; increased federal spending and presided over strong economy