4.1 Economic Transformation Flashcards
Changing employment opportunities
The USA remained in a period of military preparedness in anticipation of global conflict with the USSR and communism
-high demand for war materials because of events such as the Berlin Airlift Crisis and the Korean War
-this kept the domestic economy buoyant
-growth of disposable income sustained domestic demand. E.g demand for cars
-new job opportunities were created for skilled employment involving higher wages
-growth of the clerical sector opened up opportunities for women
-General Motors, Ford and Chrysler expanded to become some of the biggest corporations in the USA. Led to an increased demand for oil
-Expansion of the US retail sector
1945- only 8 shopping centres
1960- almost 4,000 shopping centres
-created jobs for unskilled and semi-skilled workers
-fuelled by advertising
1950- advertising expenditure increased by a 1000%
-Aircraft industry
decline in railway as domestic civilian aviation increased
jobs in aeronautical engineering involving high-skilled jobs offering higher wages compared to traditional manufacturing industries
Computing Industry
-1944, Harvard Uni produced the first general-purpose computer which had 500 miles of wiring
Led to a communications and data revolution
More white collar jobs in offices and management.
1956- first time white collared jobs outnumbered blue-collared
Government polices to encourage growth
-Increased federal spending
i.e Defense spending, supporting industries used to support them in WW2
-Technological breakthroughs
nuclear physics, aerospace, electronics and chemicals
-Federal gov sold many of their industrial facilities to private buyers such as plants and aircraft factories. This created some of the countries fastest growing businesses
Funding fuelled a knowledge revolution, white collared jobs grew. Number of salaried middle class jobs rose by 61% in the 50s
Trade Unions
highest number in 1945- 35.5% of workforce
After the war, many protested for higher pay
Passed an act in 1947 that prevented their power which stopped the number of industrial disputes
Provision for veterans
GI BILL 1944
-veterans returning for the war received a range of benefits
-those who wanted to start a business could get a guaranteed loan of $2000 from the Veterans’ Administration
-The Federal Housing Authority was willing to support veteran mortgage applications for up to 90% of a house’s value. Also gave returning servicemen low-interest mortgages
They didn’t have to have a deposit to get a mortgage
-This stimulated a massive construction boom in the 40s and 50s, which aided economic development
By 1956, 4.3 million housing loans had been made
Also gave veterans educational opportunities
Over half returning attended colleges and technical schools through grants given under the provisions of the bill
It cost the gov $14.5 billion in total
Growing Mobility
- In the 50s, car production quadrupled
- In the 50s, the USA was making TWO THIRDS of all the world’s cars and trucks
- The widespread avaliabiloty of cars led to greater mobility for people
- was directly linked to the growth of suburbs around towns and cities
- aided the growth of the tourist industry as people could now drive around the USA
- car sales were fuelled by a major inrease in credit purchashing. The world’s first credit card, ‘The Diner’s Club’, 1950 followed by American Express the following year
- demand for cars also increased with clever advertising
Growth of suburbs and the rise of Levittown projects
- prior to the avalibility of cars, people were unable to live outside of towns and cities
- the number of people living in suburbs rose 10% in the 50s and the number of suburban houses doubled as 18 million people moved out of inner cities
- cheap land and mass construction reduced house building costs and the greater avaliability of financial credit to purcahse homes increased demand
- the GI BILL helped people move and marriages doubled in this time
- William Levitt, bought 1,200 acres of land on Long Island and built 10,600 houses which were quickly bought and had 40,000 people living there
The New Consumer Society
- By 1955, the USA became the world’s first consumer society. I.e suburban houses, cars, TV’s and easy consumer credit
- the average suburban family earnt 70% higher than the rest of the country
- Fast Food- In 1954 Ray Kroc devised a new way to serve hamburgers and fries. McDonalds and similar fast food outlets provided food in a different way than normal
HOWEVER
1960- nearly 40 million people lived below the poverty line of $3000 a year for a family of four
The inner cities fell into economic decline and became associated with crime and poverty
