Economic impact of WW2 and post war developments Flashcards
Why did industrial output increase?
- supply of weapons increased after 1941 Lend-Lease Act
- weapons and supplies provided for Britain
- unrestricted supply to allies
- more factories in USA
What controlled the war economy?
War Production Board
How much worth of weapons and supplies did the War Production Board make?
$183 billion
How were big business brought into supplying weapons?
General Motors made millions of machine guns
How did the US government control certain industries ?
Office of war mobilisation to control national prices and wages
May 1943
How much did defence contribute to USA’s income ?
1937… less then 1.5%
1945… 50%
What happened to the unemployment rate during WW2?
Decreased
8.1 mil (1940)
to 1mil (1945)
By the end of the war what were employment figures ?
16million in armed forces
14 million in factories
(home front)- 4mil were African American
How many women were there in the workforce by the end of the war ?
7 million
What were teenage employment figures like during the war?
900,000 in 1940
to 3mil by 1944
During the war how much arms did USA produce in weapons?
~millions of artillery (weapons and machine guns)
~hundreds of thousands of tanks and aircraft
~35,000 landing craft
~1,200 large ships
~1,000 medium-sized ships
Due to the Cold War, what was the defence spending in the late 1940’s ?
$11 Billion per year
Due to the Cold War, what was the defence spending in the 1950’s ?
$50 Billion per year
What was the Lend-Lease Act ?
An American law that allowed the President to send military aid to countries fighting in a war.
What were President Johnson’s reforms called ?
The Great Society
What was President Truman’s plan called ?
The Fair Deal
What did the Fair Deal do?
- Increased minimum wage
- old age benefits to 10 million Americans
- replacing slums
How much had Americans spent at the the start of the 1950’s? (Affluence )
spent a total of $100 billion that they had saved up during World War Two.
What is consumerism ?
to spend more money on consumer goods and luxury items that made their lives more comfortable
What is a consumer cycle?
A cycle where as people spend more money, businesses make more money, and pay their workers more.
How did consumer goods reach target audiences?
Advertising in newspapers and magazines, on television and on the radio
By the 1950’s how much goods did USA produce ?
66% of all goods produced in the world
How much did credit card use increase by ?
800 per cent between 1945 and 1957.
What are suburbs ?
living areas built at the outer edges of towns or cities.
Who did suburban development target?
Middle Class Families
What was the purpose of suburban development?
- To move people away from town centres
- Affordable property
- Easier commute to work
What are the advantages to living in the suburbs ?
- Part of the American Dream
- Reasonable Prices
-Low interest rates on loans
-Large houses and land
-Labour saving appliances
How much the amount of homeowners increase by 1960?
23.6 million in 1950 to 32.8 million in 1960.
How many houses were being built every year from 1944 to 1950 ?
14,000 in 1944 to 1.7 million in 1950.
What were the cons of Suburban Development?
- Houses not sold to African Americans or ethnic minorities.
What was the baby boom?
a rapid increase in the number of babies being born after the war.
Why did the baby boom happen?
- men returning from the war
- increased affluence
-an increase in the number of marriages and fewer divorces
How many babies were born each year between 1954 and 1964?
4 million
How many Americans lived below the poverty line in 1962 ?
40 million
What is the poverty line ?
The estimated minimum level of income needed to secure the necessities of life.
What were the causes of poverty after WW2?
- African Americans and minorities were discriminated, paid less
-Elderly with little pension - No national health service or welfare
-Lack of employment for the disabled
What is rugged individualism ?
Personal liberty and free competition, and the idea that people should be self-reliant.
Why was there very little welfare FOR : elderly , unemployment and medical benefits ?
- Rugged individualism
- Reluctance to pay higher tax
- medical insurance
-companies stop congress from providing national healthcare
When was there reform to the causes of poverty ?
1960’s
with the Democratic party
What is a welfare state ?
A state (or country) where the government provides welfare benefits, such as education, health care and unemployment payments.
What are consumer goods ?
Goods that are used as ends in themselves and not for the production of other goods.
