American Economic Boom In The 1950's

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5. What were the causes of the American economic boom in the 1950s? How did prosperity affect the nation socially, politically, and economically? * A pent up demand for consumer goods fueled a steady industrial expansion. Personal savings grew, so people could afford to buy more. * In 1950, Americans bought over 6 million cars and GNP reached $318 billion. Baby boom and suburban flight helped increase consumer demand. * Abundant oil and cheap gasoline * Electronics industry boomed (TV was invented, first generation of computers). * Construction, cars, electronics all did well. * War and Government - Heavy government spending during the cold war added extra stimulus to the economy, offsetting and moderating recessions. Cold War…show more content…
The G.I bill (Servicemen's Readjustment Act) provided veterans with money, college tuition, and low interest loans so that they could buy homes. This contributed to the economy because soldiers returning home had money to spend. Another reason for the economic boom was new technology being invented that people wanted to buy. * In general the prosperity level of all sections of society increased. This brought about basic changes in lifestyle of Americans. More people could afford new housing, and many people moved to houses in suburbs, which were bigger and had more open spaces. Movement to suburbs was also partly due to better school facilities for children. * At the end of the decade, the median American family had 30% more purchasing power than at the beginning. Inflation, which had wreaked havoc on the economy immediately after World War II, was minimal, in part because of Eisenhower's persistent efforts to balance the federal budget. Except for a mild recession in 1954 and a more serious one in 1958, unemployment remained low, bottoming at less than 4.5% in the middle of the

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