4.1 Economic Transformation Flashcards
changing employment opportunities
development of aircraft and shipbuilding continued after the war due to tensions of Cold War (remained in period of military preparedness- Berlin airlift and Korean War ) = high gov expenditure and high demand = economy buoyant
new employment opportunities were provided due to aircraft industry:
Jet aircraft was purchase by US Air Force
= decline in importance of railways + increased air travel = created more job opportunities in engineering industry ( highly skilled jobs and wages )
technological development = jobs in computing
1944: Harvard and Internal Business Machines produced first general purpose compiler
1950s: used in business and industry = communication and data revolution
Growth of us econnomy = increase in white collar jobs in offices and management
1947-52: chemical industry saw 3% increase in blue collar BUT 50% in white collar
1956 - while collar workers outnumbered amount of blue collar
car production: indicator for rising domestic demand and rise in disposable income
1946: 2 million 1955: 8 million
Productivity rose dramatically
1945 - 310 hours to make a car
1960 - 150 hours
= new job opportunities were created for skilled employment with higher wages + new clerical employment opportunities = opportunities for women who were underrepresented in manufacturing jobs
. General motors,ford, ->stimulate demand for oil
Expansion of retail sector-
1945 - only 8 shopping centres
1960 - 4,000 shopping centres
Selling TV, domestic goods and labour saving
devices
= create jobs
* all job changes fueled by advertising - 1950s
Ad expenditure increased by a thousand percent
labour saving machinery and automation were introduced into factories = fedemandwer jobs but easier conditions, higher productivity and pay
shift in jobs from production line to offices
1950s: industrial works fell from 39% to 36%
clerical workers: 40% to 46% 1945 -
The Growth of Suburbs
- rapid growth in care ownership- prior ability to live outisde town or city centre was limited
*** people living in suburbs rose 10% during 1950s - number of surburban houses nearly doubled - 18 million people moved out of inner cities**
- cheap land and mass construction= cheaper costs
- avaliabilty of financial credit to purchse = increase demand
- GI Bill - acquiring mortages and socail developments.
- number of marriages doubled - two mullion couples still living with relatives = rise in demand
- in California suburbs were constructed around Los Angeles - ranch style hosuing - change from inner city living
Growth of Levittowns
- 1947- bought 1,200 acres of farmland on Long Island
- Built 10,600 housses - quickly brought by more than 40,000 people
- opporuntiy via gov guarantee for veterans mortages under GI bill
- reduced costs - prefabricated walls and door and window frames - quickly assemble
- encouraged sales of living pools, schools, athletic fields = more attractive
- originally sold for $6,900
- only sold to whites
- 1953- Levittown contianed 70,000 people - larges development without any black americans
- the polciy racial degreagtion decalred illegal in 1960s
Government policies to encourage employment growth
Federal government actively attempted tostimulate economic growth by increasein defence spending - supporting industries that had grown to support USA in world war
Technological advances - led to new industries and greater productivity
Eg. Nuclear physics, aerospace, electronics
After 1945 - sold many of its industrial facilities such as aircraft factories to private buyers create countries fastest growing businesses
Increased federal government spending:
Eisenhower military industrial complex- businesses and military worked together
Direct and indirect funding provided money for scientific research fields - such as plastics - increase finding 600% during 1950’s
= development of knowledge revolution - growth in professional t technological jobs
Middle class women’s grew 61% between 1945 and 1957
*Helped lead to a concentration of industrial power - General Motors, bow chemical cooperations main beneficiaries of military industrial complex)
Increase in efficiency due to limitations in trade unions
1945 - 35.5% of us workforce were in Unions
Post war-effected by strikes due to demanding higher wages
1947 - Taft Hartley act - reduce trade unions rights - right to call strike
Provisions for veterans
1944 GI bill-stimulant to economic growth, known as servicemen’s readjustment act
Veterans returning from war reciered a range of benefits
$2,000 loan for start up businesses from the veteran’s administration
Federal housing authority was willing to support veteran mortgage applications for up to 90% of a houses value
Veterans administration gave returning servicemen low interest mortgages - did not have to have a deposit in order to secure
= help stimulate major construction boom in early 1950s - aided economic development
1956 - 4.3 million home 10 ans had been made- $33 billion value
GI Bill gave veterans educational opportunities: over half of 7.8 million returning servicemen attended colleges through grants
GI Bill cost federal government $14.5 billion
Growing mobility
Post war economic boom t transformation was aided by growth of car industry
1946 -55 car production quadrupled
1950 - produced 2 thirds of all worlds cars and trucks
1955 – 9.2 million cars and trucks whilst UK only produced 1.3 million and 7,000
Wide spread availability = greater mobility for americans-linked to growth of suburbs around towns and cities
Aided the growth ot domestic tourist industry
Causeles -belled by increase in credit purchasing by consumers
1950 -first credit card, dines club
1951 - American Express
Short term credit rose from $8.4 billion in 1946 to $45.6 billion in 1958
Demand for cars increased due to advertising - ‘built in obsolescence’ - new models With innovation
Car production by federal construction of highways
1946: $79 million
1960: $ 2.6 billion
