AMERICAN PROSPERITY 1945-54

Question 1

WWII

Answer 1

1. promoted prosperity- like the 1920’s boom. exports etc
2. Re- armament of britain- producing and selling ammo
3. US military under lend- lease to Britain- prevented large war debts
4. military research led to chemical and electronic industries re-establishing, as well as aviation

Question 2

LARGE CORPORATIONS

Answer 2

1. virtual monopolies on trade- europes economy was in too much of a state
2. more efficient machinery and computers. larger and cheaper outputs
3. GNP rose to more than double between 1940-45
4. conglomerates grew
5. franchises like McDonalds grew

Question 3

GOVERNMENT

Answer 3

1. high government spending to drive up demand in the post war economy
2. roosevelts economic bill of rights 1944- employment, food, clothing, farmers rights, social security, education all a right
3. employment act of 1946- stable inflation and employment
4. g.i. bill- benefits for war veterans, cheap mortgages, low interest loans, unemployment compensation

Question 4

WORKFORCE/ CONSUMERS

Answer 4

1. full employment meant much more spending from incomes
2. working conditions increased, higher wages, a healthier workforce, paid holidays and insurance increased productivity by 35%
3. consumer demand rose to 150 billion
4. increased services