economic change 1945-75

Question 1

what did a wartime economy cause?

Answer 1

• economy stetted bugger than ever (250 billion)

- switch to consumer economy like cars and TV’s

Question 2

how could people afford good in consumer economy?

Answer 2

full employment in 1942

Question 3

how much money was spent on WW2?

Answer 3

$250 billion (expanded economy)

- loans to Europe become constant income during and after war

Question 4

how many babies were born every year from 1954-64?

Answer 4

4 million

Question 5

how many suburban houses were built in 1950?

Answer 5

1.7 million (left inner city areas very run down)

Question 6

what did consumption increase to after the war?

Answer 6

33% of the worlds goods (only 6% of worlds population)

Question 7

what did consumer debt increase to?

Answer 7

$56 billion by 1960

Question 8

how was the post war boom different to the 20;’s boom?

Answer 8

• hire purchase was used at a slower rate and only for more expensive goods
• people weren’t as extravagant as they believed the boom wouldn’t last

Question 9

how did the government help homeowners?

Answer 9

• government sponsored mortgages offered mortgages of 90% of the value with low interest rates
  (60% owned own homes by 50 compared to 50% in 45)

Question 10

what was the growth of the car industry after the war?

Answer 10

• 695,000 in 1945

- 6.7 million by 1950

Question 11

what did the growth of car ownership lead to?

Answer 11

• roadside hotels and gas stations
• first McDonald’s in 1955, 228 by 1960
• first holiday inn. in 1952

Question 12

how many TV’s were there by 1950?

Answer 12

50 million

Question 13

how many people had labour saving devices by 1950?

Answer 13

• 90% had fridges

- 75% had phones and washing machines