Significant Developments in the Us Economy

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What were the significant developments in the US economy (1945-89)? After World War II, the US experienced ‘An Economy of Abundance’ and increased prosperity for several decades. During the 1940s and 50s, the US became the world’s most powerful economy, world’s largest manufacturer and experienced significant developments. The government invested heavily in public investment to sustain the economic boom. 60% of all federal spending was on defence. Government spending itself increased dramatically to $580 billion in 1980. There was increased spending on education, welfare and highways which gave a huge boost to the economy. Further developments occurred with the GI bill. Between 1945 and 55, $20 billion was reserved for nearly 8 million veterans in the form of cheap loans to buy houses, start businesses or to progress to further education. This act added greatly to the economic boom as it led to a housing boom and an increase in the construction industry along with increased consumer spending. The act also paved the way for a more educated workforce in the US over the following decades. Another development in the US economy was the Highways Act 1956. This act gave $33.5 billion to the construction of interstate roads all over America. With 65,970km of roads newly built travelling was made easier and gave and direction boost to the car industry as roads were now safer and in better condition. The post-war baby boom also aided economic development. In 1946, 3.8 million babies were born. Between 1948 and 1953, more babies had been born than in the previous three decades. The huge increase in population led to more demand for public services such as schools and hospitals. In 1958, one third of the population was under the age of fifteen. This led to a dramatic increase in products targeted at a younger age group. In 1958 alone, $1.5 billion was spent on toys

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