Economic Growth Flashcards
how did post war prosperity impact the USA(4)
-US citizens consumed 50% more than EU
-pre war depression led to post war prosperity
-more employment opportunities in new industries
-more cautious consumer trends after 20s
what was pre war gov spending compared to 1948 gov spending
-$9.4 billion –>$36.5 billion
what two things grew after ww2
-the car industry
-the suburbs
how many cars were in 1945 compared to 1950
-69,500 compared to 6.7million
give a stat about two car families
two car families doubled between 1951-8
what act helped the growth of the car industry and reduced public transport usage
-1965 Interstate Highway Act
give two percentages of amount of Americans owning homes
1945 50% owned homes, 1960 60% did
give a stat about the amount of Americans in the suburbs
1920-1960 percentage of Americans in suburbs almost doubled (17%-33%)
how did the growth of the suburbs have a knock on effect
-inc car industry and shopping mall prosperity but hurt small shopkeepers
give 4 factors that contributed to post war prosperoty
-depression caused ppl to save and made stable economic growth
-war industries created jobs
-gov spending inc
-restricted credit
give 2 examples of those not affected by economic prosperity
-AA sharecroppers
-20% below poverty line
by 1951 how many families had firdges
90%
how many people lived below the poverty line in 1968 compared to the 50s and the 20s
1920s- 60%
1950s - 22%
1960s - 12%
how much of the worlds population did the US account for and what percentage of world goods did they consume
-6% world population 1/3 of world goods
what boom may have inc the economic growth and give 2 stats
-baby boom
-nappies = $50 mil a year industry
-1954-64 4 milion born a year
explain 3 changes to American lifestyle caused by the economic growth
-more labour saving devices and more TV watched/ development of TV dinners
-food became luxury/leisure item
-shopping malls/ weekly shop developed
why did right wing critics criticise consumerism
-thought mass culture encouraged sexual liberation and juvenile delinquency
why was suburbia criticised
-too conformist/routine/ monotonous
-excluded AA populated in cities
how were yes men criticised
-agreeable workers killed off individualism which was devalued in capitalist system
what age group developed and how
teenagers were kept in school/ out of work for longer
when did the recession start
-1970s
what caused the 1970s recession
-post-WW2 boom began to decline due to inc international competition, the expense of the Vietnam war and the decline of manufacturing jobs
-unemployment and prices inc but wages stagnated –> stagflation
how did Nixon react to stagflation
-Nixon devalued the dollar and announced a 90 day wage/price freeze
what foreign affair worsened stagflation
-1973 Oil Crisis caused by a Middle Eastern embargo on the US for supporting Israel
what were the gov’s economic policies known as and give an example of one
-known as the ‘Nixon Shock”
-eg breakup of the Bretton Woods system which unanchored the world’s currencies
were the ‘Nixon Shock’ economic policies successful
-no 1971-4 wage/price controls only slowed prices during increasing food/energy shortages
-ranchers could not ship cattle to market led to shortages in supermarkets
