Civil War Lecture 15
American Affluence and the Great Society
1. Key Personalities
Dwight D. Eisenhower
Served as U.S. President from 1953 to 1961.
Noted as the first president of the television age.
John F. Kennedy
Served as U.S. President from 1961 to 1963.
Implemented a broad range of economic policies featuring low taxes aimed at promoting economic growth.
Encouraged a significant increase in social program spending.
Lyndon Johnson
Served as U.S. President from 1963 to 1969.
Known for the Great Society welfare program, which is considered his most lasting domestic initiative.
Richard Nixon
Served as U.S. President from 1969 to 1974.
Elected in 1968 on a platform focused on stability.
Resigned in disgrace in 1974.
2. The Patterns of Affluence in the Late 1940s and 1950s
The American economy experienced significant growth by the end of the 1950s, though affluence was not uniformly distributed across the population.
Economic Indicators:
Gross National Product (GNP) rose from 200 ext{ billion} in 1945 to 500 ext{ billion} in 1960.
Per capita income increased from 1,300 in 1945 to 1,800 in 1960.
Unemployment averaged approximately 5 ext{ ext{%}} from 1945 to the early 1960s, a marked improvement from the double-digit rates of the 1930s.
Inflation averaged about 3 ext{ ext{%}} per year from 1945 to 1960 despite robust economic growth.
U.S. exports doubled from 1950 to 1960 due to increased international trade.
General Causes of the Economic Boom:
Government Spending:
Military expenditures during the Korean War contributed to economic growth.
Investments in education, housing, and veterans’ benefits bolstered the economy.
The National Highway System, established by the 1956 Interstate Highway Act, saw expenditures of 100 ext{ billion} over the subsequent two decades.
Technological Improvements:
Worker productivity increased by 35 ext{ ext{%}} from 1945 to 1960.
Integration of computers into business practices enhanced efficiency.
An increased presence of skilled scientists, engineers, and other professionals facilitated innovation.
Baby Boom:
United States population grew from 150 ext{ million} in 1950 to 180 ext{ million} in 1960.
Population growth led to increased government spending on education and a surge in consumer demand.
Suburban Growth:
The suburban population increased by 47 ext{ ext{%}} during the 1950s, more than doubling the general population growth rate.
This growth was fueled by high demand for automobiles and government investment in necessary infrastructure.
By 1960, one-third of Americans lived in suburban areas.
Model suburbs were popularized by Arthur Levitt in Long Island, NY, leading to the creation of “Levittowns,” which were uniform subdivisions characterized by treeless streets and homes generally priced under 10,000.
3. The Consumer Culture
Consumerism experienced a significant increase during the 1950s.
Consumer Credit:
Increased by 800 ext{ ext{%}} from 1945 to 1957.
Expenditure on Goods:
Wealthy Americans purchased more extravagant automobiles.
New household products (e.g., dishwashers, garbage disposals, refrigerators, stereos) became widely available.
Children's toys, such as the hula hoop and various Disney-themed products, surged in popularity.
Advertising Growth:
A notable increase in national advertising campaigns characterized the promotion of a wide range of consumer products.
4. The Great Society
John F. Kennedy's administration sought to enhance economic activity and combat poverty in America through various initiatives.
Economic Reforms:
Introduced tax credits for businesses.
Advocated for comprehensive international trade reform, exemplified by the “Kennedy Round” of the General Agreement on Tariffs and Trade.
Extended minimum wage coverage to millions of workers and raised the minimum wage from 1 to 1.25 per hour.
Increased Social Security benefits.
Following Kennedy's assassination, Lyndon Johnson achieved the largest electoral majority in American history, enabling him to implement extensive domestic reforms.
Johnson’s administration, with complete Democratic control over the House of Representatives and the Senate, pursued various domestic initiatives alongside involvement in the Vietnam War.
The Great Society and the ‘War on Poverty’:
Economic Opportunity Act (1964):
Established the Office of Economic Opportunity, which coordinated vocational training programs, provided college work-study grants, and funded the Neighborhood Youth Corps.
Created Volunteers in Service to America (VISTA), facilitating activists to spread out across America to provide education and social services in communities.
The Office of Economic Opportunity disbursed 3 ext{ billion}, notably helping many poor Americans, especially African-Americans, escape poverty; however, persistent social issues and poverty remained unaddressed.
Medicare (1965):
Ended a twenty-year battle over subsidized health insurance, overcoming the stigma associated with welfare by making benefits available to all elderly Americans, regardless of financial need.
Enabled doctors to maintain private practices with fees covered by the government.
The costs escalated from 6.2 ext{ billion} in 1970 to 60 ext{ billion} in 1984.
The Medicaid program for low-income Americans was enacted in 1966.
Johnson's administration saw the establishment of several new government agencies, including the Department of Housing and Urban Development and the Department of Transportation.
The Omnibus Housing Act of 1965 provided rent supplements to low-income individuals, while food stamps were introduced in 1967.
The expenses related to the Great Society increased significantly; federal government expenditures ballooned from 94.4 ext{ billion} in 1961 to 197 ext{ billion} in 1970.
The official poverty rate declined from 21 ext{ ext{%}} in 1959 to 13 ext{ ext{%}} in 1969, signaling partial success of the programs initiated under the Great Society framework.