(4a) Economic transformation

Question 1

Economic situation:

Post war prosperity

Answer 1

• USA emerged as the world’s richest nation.
• Employment and economic opportunities improved for many.
• USA didn’t become isolationist but prepared for Cold War (increased military spending).
• 1945: 7% of the world’s population, but 42% of global income.
  
  • Per capita income: $1,450 (double Britain).
  • Avg American consumed 3,000 calories a day (50% more than in europe.)

Question 2

Economic situation:

Consumer spending

Answer 2

• 1946: Car production = 2 million.
  1955: Car production = 8 million.
• By 1960: Almost 4,000 offering new job opportunities for unskilled and semi-skilled workers.

Question 3

Economic situation:

Employment

Answer 3

• 1956: Demand for white collar workers outnumbered need for blue collar workers (first time ever).
• Number of jobs in professional and tech work grew.
  
  • Number of salaried middle-class workers rose 61% (1947-1957).
• Opportunities in computing - 1944 IBM first general use computer.
• Increasing worker demands favoured men.

Question 4

Economic situation:

Issues + worries

Answer 4

• Consumer spending was not out of control or wasteful - people remembered the Great Depression.
• Average earnings: $3,000 per annum.
• Uneven distribution of wealth: 1947: 33% of homes lacked running water; 40% lacked flush toilets.
• Many rented: 1950 home ownership = 55%
  1960 home ownership = 62%.

Question 5

Government policies to encourage growth:

Increased military spending

Answer 5

• New industries emerged: Nuclear physics aerospace, electronics, and chemicals.
• Concentration of power in hands of small number of giant corporations (General Motors eg) - became main beneficiaries of the ‘military industrial complex’.
• Cold War spending + investment:
  
  • Direct + indirect govt funding for scientific research (fields such as plastic) increased 600% in the 1950s.

Question 6

Government policies to encourage growth:

Reduced role of Trade Unions - Context behind it

Answer 6

• 1945: 35.5% of workforce were union members.
  
  • Inflation rose and workers went on strike (1946: roughly 10% of the workforce went on strike at some point).
• Republicans gained control of congress during midterm elections (1946).

Question 7

Government policies to encourage growth:

Reduced role of Trade Unions - Taft-Hartley Act

Answer 7

• 1947: Taft-Hartley Act was passed:
  
  • Outlawed closed shop - people in particular industry have to be in a union.
  • Outlawed secondary strikes - workers couldn’t strike in solidarity with other industries.
  • Harder to strike + employers could sue unions.
  • Union leaders couldn’t be communist.
  • President had power to prevent strikes that were against the national interest.

Question 8

Growing mobility:

Cause - Growth of Car Industry

Answer 8

• 1950: USA produced 2/3 of world’s cars and trucks.
• 1946-1955: Production of cars in USA quadrupled - car + truck production = 9.2 billion (by 1955).
• Big three corporation dominated the industry:
  
  • General Motors; Ford; and Chrysler
• Helped by advertising.

Question 9

Growing mobility:

Impact of car industry - Benefitted feeder industries

Answer 9

• Benefitted industries producing car materials, as well as synthetic rubber.
• Development of more highways + construction industries:
  
  • The Green Book = “Negro motorists guidebook” to travelling in Jim Crow America. Provided a rundown of facilities that were safe for African-Americans.
  • The Green Book: Published in 1936 by Harlem-based postal carrier, Victor Hugo Green.

Question 10

Growing mobility:

Impact of car industry - Growth of domestic tourism

Answer 10

• Americans could drive to areas throughout the States.

- Encouraged domestic tourism - boosted local economies.

Question 11

Growing mobility:

Impact of car industry - Growth of suburbs

Answer 11

• People now had more freedom of choice about where to live.

- Many moved away from urban industrial areas to suburbs.

Question 12

The Provision of mortgages for war veterans:

GI Bill of Rights - Aided Post war prosperity

Answer 12

1944 Selective Servicemen’s Readjustment Act:

• Grants to veterans - improve education, learn new skills, or set up business.
• $2,000 loan for starting business.
• Federal Housing Authority: Helped veterans wanted to buy a home - mortgages up to 90% with low interest. (created housing boom which helped construction).
• By 1956: 4.3 million home loans - value = $33 billion.
• COST: 1944-1956 = $14.5 billion.

Question 13

The growth of suburbs

Answer 13

• American home owners: 1945 = 50%; 1960 = 60%.
• Living in suburbs: 1920 = 17%; 1960 = 33%.
• Levitt bough 1,200 acres (1947) in New York + built 10,600 houses - occupied by 40,000. By 1953, 70,000 lived there (Long Island - NYC).
• Levittown made living in the suburbs attractive.

Question 14

The growth of suburbs:

Limitations

Answer 14

• Lack of variety + their conformity (in regards to Levittown projects).
• Urban centres and small shopkeepers lost business.
• Condition of housing in the inner city area began to deteriorate.
• Levittown didn’t accept black Americans + black Americans often faced problems obtaining mortgages.
• 1960s: US courts declared racial discrimination + segregation illegal in housing (MLK march on DC in 1963).

Question 15

The New Consumer Society

Answer 15

• Average family income 1953: $4,011 per year.
• Average family income in the suburbs was 70% = $6,500.
• By 1957: nappies became a $50 million per year industry (because of baby boom).
• Labour saving appliances + white goods increased: By 1951…
  
  • 90% of families had fridges.
  • 75% had washing machines + telephones.
• LP records, polaroid cameras, electric clothes dryer, and convenience foods became popular.

Question 16

The new consumer ____ meant ______ had to fit the traditional “____ _____” role.

Answer 16

The new consumer boom meant women had to fit the traditional “home maker” role.