The economic impact of WW2 and post-war developments Flashcards
1
Q
Industrial output
A
- US economy started to rise after 1939 and it became clear that new factories would need to be built and old ones re-equipped to increase industrial output
2
Q
Business and the war effort
A
- Roosevelt was determined to make use o leading US businessmen to provide for the needs of the war
- War production board was run by leading industrialist Henry Kaiser who was heavily involved in the Tennessee valley authority
- General motors produced war products such as heavy machine guns causing a rise in the firms money
3
Q
Effects of the war on US economy
A
- Enabled expansion i. its industrial and military complexes
- September 1945, the USA was the most powerful economy in the world
- Rise in jobs
- During the war the Lend lease programme enabled expansion of US industry to its allies (Uk, USSR and Latin America)
- By 1960, the US was the strongest economic power in the world
4
Q
The workforce
A
- As a result of conscription about 16 million american men and women served in the US armed forces
- This resulted in an increase of workers on the home front
- Decreased unemployment dramatically from the 1930s
- By 1944, unemployment had decreased from 9.5 million to 670,000
- General mots took on an extra 750,000 people in its workforce
- Black workers migrated from the south to the industrial north
- 12 million women went to 19 million women working
5
Q
Increasing Industrial Population
A
- Roosevelt beloved that to win a modern war you had to have more of everything than you opponents
- Coal, oil, iron and steel industries expanded due to the government contracts
- War production board aimed to increase US war production and by 1944 the US was producing 1/2 of the worlds weapons
6
Q
The scale of US production
A
1945: US industrial output was large
1944: 25% of britain’s military equipment was produced by USA
1945: 50% of worlds maufacturig took place in the USA
US gross nation product grew from $200,000 million in 1940 to $300,000 in 1950
7
Q
US industry after WW2
A
- US citizens who purchased war bonds now began to cash them in and the total amounted to $200 Billion
- Automobile industry (ford, general motors and Chrysler) boomed again and sales of new cars rose from 69,500 (1945) to 6.7 million in 1950
8
Q
Military spending
A
- Cold war developed after 1948, the increase in defence spending helped sustain economic boom
- In 1948, the us defence budget was $11 billion but this rose to $40 billion - $50 billion per year in the 1950s
- Desert areas in Arizona and New Mexico were used as centres for weapon testing
- Weapon research and development
- California benefitted from military contracts which led to the development of high tech industry
9
Q
Open-trading
A
- World markets opened up
- Demand for customer goods increased
- US industry was not damaged by air attacks so US had an advantage over European countries devastated by the war
- European demand kept US prodution and sales high
10
Q
Industry and economic expansion
A
- Economic expansion created an increase in employment opportunities in industries such as electrical goods, aircraft and chemicals
- Consumer tases change and the processed food companies made huge gains
- Tobacco companies made vast profits and employed more people
- End of 1940s the USA produced 1/2 of worlds manufactured goods, 57% of still, 62% of oil and 80% of cars
11
Q
Affluence, consumerism and fair deal sucess
A
- After roosevelts death in 1945, truman introduced a programme of economic development and social welfare (FAIR DEAL)
- The fair deal led to prosperity in the 50s and was continued by Eisenhower
- $100 billion saved in WW2 went on consumer goods
- Consumer credit increased by 800% between 1945 and 1957
- Increase in efficiency of workforce meant chaperons goods
- Increase in population provided an increase in demand
- The Korean war and cold war meant that US industry made new weapons and big orders of munitions for industries
1960: Avg standard of living was 3x of avg briton and shopping became more popular and spending was encouraged. 90% of houses had TV sets
1959: Avg wage increased from $55 per week to $80 per week in 1959 - In new homes all. modern convinces were necessities
12
Q
Suburbanisation
A
SUBURBIA
- New development in the 1940s and 50s
- Many middle class families left the city and moved to homes in suburbia
- First planned suburbia was 44km from Manhattan
- “American dream” and ideal family area
- More people had cars which meant they could live further away from work
- Reasonably priced houses
- Baby boom increased demand for new houses
- 1960: 20% of people lived in modern houses
13
Q
Problems of suburbia
A
- Mums who didn’t work and stayed t home felt bored and isolated
- Many people such as black citizens couldn’t afford these houses
- In 1960, Leviton had a population of 65,000 and not one of these people were Black Americans
14
Q
Poverty in the midst of plenty
A
- Many Americans remained as part of an underclass that wasn’t able to share in prosperity
- No national health service
- increased cost of medical care
- USA was behind countries in providing good pensions and welfare services
- 1959, 29% of population live below poverty line
- 1955, 40% of New York’s recounts of welfare were African American
