What Was The Impact Of Economic Change, 1917-80

Question 1

WW2, post-war affluence and growth, 1941-69

What was WW2 impact on the economy?

Answer 1

Boosted the US economy, and continued prospering after

Question 2

WW2, post-war affluence and growth, 1941-69

What factors led to post war growth?

Answer 2

Demand for consumer goods/ mass production, business boom, baby boom, less strikes, farmers prospering, increased spending on aid/welfare

Question 3

WW2, post-war affluence and growth, 1941-69

How did consumer demand contribute to growth?

Answer 3

Huge demand for goods that were scarce during war, move from wartime to civilian production easy. Prodcution of goods moved from value of $70bil 1945-50, kept unemployemnt down

Question 4

WW2, post-war affluence and growth, 1941-69

How did business contribute to growth?

Answer 4

Boomed, expanded workforces, increased wages, encouraging spendind

Question 5

WW2, post-war affluence and growth, 1941-69

How did government stance on strikes foster growth?

Answer 5

Gov came down hard, when miners and rail workers striked, Truman took control of rails and mines. When rail workers walked out, he moved to draft them to army. Backed down - fews strikes after

Question 6

WW2, post-war affluence and growth, 1941-69

How did a post war baby boom contribute to economic growth?

Answer 6

Meant growing demand for child goods/foodstuffs. Toy makers made $1.6bil in 1959 and $2bil in 1961

Question 7

WW2, post-war affluence and growth, 1941-69

What did the birth rate rise to during the baby boom?

Answer 7

In 1940, there was 2,559,000, in 1950 there was 3,632,000, 4mil+ in 1955. Stayed at 4mil mark until around 1965

Question 8

WW2, post-war affluence and growth, 1941-69

What did more babies mean for the future?

Answer 8

Meant more toddlers/teenagers, created need for schools/colleges and became consumers themself

Question 9

WW2, post-war affluence and growth, 1941-69

What was the farmer situation in the post war boom?

Answer 9

Managed to do well, thanks to subsidies and domestic/abroad demand

Question 10

WW2, post-war affluence and growth, 1941-69

What was impact of increased gov spending through Trumans fair deal policies do for veterans?

Answer 10

Rose through Trumans ‘fair deal policies’, gov provided support for military, including leaving payment, unemployment pay, loans for homes, healthcare, education through GI Bill

Question 11

WW2, post-war affluence and growth, 1941-69

What did fair deal policies do for social security?

Answer 11

Increased amount and expanded them

Question 12

WW2, post-war affluence and growth, 1941-69

What did the 1949 National Housing Act do?

Answer 12

Introduced slum clearance, 810,000 low income housing units to replace them - provided work for building industry

Question 13

WW2, post-war affluence and growth, 1941-69

What was the cloud over the post war boom?

Answer 13

Inflation. Prices rising, faster than wages.

Question 14

WW2, post-war affluence and growth, 1941-69

What caused post war inflation?

Answer 14

When The govs office of price administration (OPA) - which controlled war prices - shut down in 1946, businesses exploited demand

Question 15

WW2, post-war affluence and growth, 1941-69

How quick was post war inflation?

Answer 15

Prices rose 25% in 2 weeks, after initial surge slowed down

Question 16

WW2, post-war affluence and growth, 1941-69

What did the 1946 Employment Act do (from Truman)?

Answer 16

Goal for full employment, set up council of economic advisers for Pres, also Pres had to give strategy report to economic committee in congress after each budget

Question 17

WW2, post-war affluence and growth, 1941-69

What was Trumans gov careful to do with the economy?

Answer 17

Keep taxes low, rising buying on credit meant inflation didnt damp spending in 50s. Fed put controls on money supply to low inflation

Question 18

WW2, post-war affluence and growth, 1941-69

What was the baby boom of the 1950s fuelled by?

Answer 18

Men returning from war, less women in work, and a good economy

Question 19

WW2, post-war affluence and growth, 1941-69

What did the economic boom of the 50s/60s make people confident about?

Answer 19

‘The American Way’, opposed to communist ideas, consumerism was patriotic

Question 20

WW2, post-war affluence and growth, 1941-69

What was wrong with the economic growth of the 50s/60s?

Answer 20

It was unsteady, sometimes inflation and unemployment surged for a year or so

Question 21

WW2, post-war affluence and growth, 1941-69

Did everyone enjoy economic growth?

Answer 21

No, many people still worse off, one reason for suburbia was people leaving increasingly dangerous cities

Question 22

WW2, post-war affluence and growth, 1941-69

Why was consumer confidence also a bad thing?

Answer 22

While it was vital for growth, it hid the economys underlying issues

Question 23

WW2, post-war affluence and growth, 1941-69

What were suburbs a symbol of?

Answer 23

Visible economic growth, factories, colleges and unis started moving out cities

Question 24

WW2, post-war affluence and growth, 1941-69

What did the gov do about growing suburbia?

Answer 24

Funded roads and homes (e.g. 1956 highways act built 41k miles of roads

Question 25

# WW2, post-war affluence and growth, 1941-69 What did the boom economy mean builders did?

Answer 25

Willing to invest in suburbs and running necessary facilities

Question 26

# WW2, post-war affluence and growth, 1941-69 What was the Levitt company/

Answer 26

Specialised in mass-produced houses, quick and cheap. Led to 'Levittowns in the NorthEast

Question 27

# WW2, post-war affluence and growth, 1941-69 What was one of the biggest Levittowns?

Answer 27

In long island, 17k homes, 82k residents, cheapest under $7k, (included washing machines)

Question 28

# WW2, post-war affluence and growth, 1941-69 What did cheaper homes allow people to do?

Answer 28

Buy cars and get mortgages to buy homes easily

Question 29

# WW2, post-war affluence and growth, 1941-69 What did Levitt refuse to do?

Answer 29

Sell to black Americans, as did other developers. Led to black suburbs - northern segregation

Question 30

# WW2, post-war affluence and growth, 1941-69 While people were spending more what else shifted?

Answer 30

Where goods came from

Question 31

# WW2, post-war affluence and growth, 1941-69 What was happening with USAs market hold late 1950s?

Answer 31

Losing its place in global market and tech innovation - growing impact on economy

Question 32

# WW2, post-war affluence and growth, 1941-69 What happened with USA and Japan over the transistor radio?

Answer 32

USA built first one, but didnt improve/minitaurise it - Japan did. USA had to buy Japanese parts. By 1958, 48mil transistor radios in USA

Question 33

# WW2, post-war affluence and growth, 1941-69 How did location of industry shift?

Answer 33

From North/East to South/West

Question 35

# WW2, post-war affluence and growth, 1941-69 What was much of the industry shift due to?

Answer 35

Due to wartime investment in war production. Land, goods, services cheaper in S/W - after war military bases stayed and new factories began peacetime goods.

Question 36

# WW2, post-war affluence and growth, 1941-69 Why was the South and West more attractive to many?

Answer 36

Good weather - especially with AC development. Good work. As many left inner cities emptied and problems in them worsened

Question 37

# WW2, post-war affluence and growth, 1941-69 Why did the gov shift economic strategy in the 1950s?

Answer 37

Previous thinking, that high spending, even when budget deficit grew, would keep stable economy and low inflation didnt work post ww2

Question 38

# WW2, post-war affluence and growth, 1941-69 What was the new economic thinking of the 50s?

Answer 38

Keep interest rates low, increased money supply, thinking it would supress inflation. 1952, $169.7 billion in circulation. By 1960, was $215.8bil