The growth of the American economy in the 1950s

Question 1

What was the level of unemployment at the end of Truman’s presidency ?

Answer 1

2.5%

Question 2

What was the level of unemployment by the end of Eisenhower’s presidency ?

Answer 2

6.6%

Question 3

What was the average level of inflation under Truman ?

Answer 3

3.1%

Question 4

What was the average level of inflation under Eisenhower ?

Answer 4

1.4%

Question 5

What was the GDP in 1950 under Truman ?

Answer 5

$355 billion

Question 6

What was the GDP in 1960 under Eisenhower ?

Answer 6

£488 billion

Question 7

What was the average disposable income per capita in 1946 under Truman ?

Answer 7

$1026 ($1720 in 1940)

Question 8

What was the average disposable income per capita in 1960 under Eisenhower ?

Answer 8

$2699

Question 9

How did Purchasing power change under Eisenhower ?

Answer 9

By the end of Eisenhower, there was an increase of 30% in purchasing power

Question 10

How much of the population was in poverty by the end of Eisenhower’s presidency ? (compare to Truman)

Answer 10

Truman - 28%

Eisenhower - 25%

Question 11

How much had the economy grown by, by the end of Eisenhower’s presidency ?

Answer 11

37%

Question 12

Compare the percentage of the population who had a TV in 1950 compared to 1960 ?

Answer 12

1950 - 9%

1960 - 90%

Question 13

What was the Diners club ?

Answer 13

a credit card company

Question 14

When was the Diners club founded ?

Answer 14

1950

Question 15

How many members did Diners club have at the end of 1950 ?

Answer 15

20,000

Question 16

How many members did Diners club have at the end of 1951 ?

Answer 16

42,000

Question 17

In the early 1950s, how much was Diners club charging card holders ?

Answer 17

a $5 yearly fee

Question 18

When was the American express credit card launched ?

Answer 18

1958

Question 19

Give 4 reasons as to why there was the growth of the American economy in the 1950s

Answer 19

1) the end of WWII and the GI bill

2) The Baby boom

3) The growth of Media and advertising

4) The increased availability of credit

Question 20

What were war bonds ?

Answer 20

an investment scheme putin place by the government during WWII

Question 21

What happened to the War bonds put in place by the government during WW2 ?

Answer 21

They matured and paid out (1948)

Question 22

How much money was paid back to those who had invested in war bonds in the years that followed WW2 ?

Answer 22

over $185 million

Question 23

What did government spending on the GI bill aim to give veterans ?

Answer 23

a good quality of life, as a reward for their service

Question 24

How did the GI bill lead to a growth in the American economy during the 1950s ?

Answer 24

It led to a boost in housebuilding and an increase in the numbers of educated people in the population

Question 25

How much was spent annually on the military by Eisenhower ?

Answer 25

$40 billion

Question 26

For what period of time did the Baby boom last ?

Answer 26

1946 - 1959

Question 27

How did the Baby boom lead to a growth in the American economy in the 1950s

Answer 27

It led to an increased demand for goods as well as housing

Question 28

What kind of goods experienced an increase in demand as a result of the baby boom ? (3)

Answer 28

1) Baby food 2) toys 3) nappies

Question 29

What new demographic emerged in the late 1950s as a result of the Baby boom from 1946 - 1959 ?

Answer 29

teenagers

Question 30

How were teenagers described by the life magazine in 1959 ?

Answer 30

A '$10 billion' power

Question 31

Why were teenagers described as a '$10 billion' power by the Life magazine in 1959 ?

Answer 31

Because of their willingness to spend money on food, cosmetics and entertainment.

Question 32

In 1957, how much was it estimated that the teenager spent per week ?

Answer 32

$10 - $15

Question 33

The 1950s saw an explosion of newspaper, _______, and __ advertising encouraging American people to become consumers

Answer 33

radio, TV

Question 34

How much was spent on advertising in 1950 ?

Answer 34

$6 billion

Question 35

How much was spent on advertising by 1963 ?

Answer 35

$13 billion

Question 36

What were the factories that used to make military equipment during WWII making in the 1950s ?

Answer 36

They were mass producing consumer goods

Question 37

How did the increase in TV sales lead to a growth in the American economy in the 1950s

Answer 37

It created a market for advertisers to encourage American people to become consumers

Question 38

Give an example of a famous advertiser who used the increased ownership of TVs by the American people to encourage consumerism ?

Answer 38

Edward Bernays

Question 39

Who was Edward Bernays ?

Answer 39

a famous journalist who popularised the idea that large masses of people could be guided through mass media

Question 40

Give an example of a politician who used advertising more effectively

Answer 40

Eisenhower

Question 41

How did Eisenhower use advertising more effectively ?

Answer 41

In his 1952, 'Eisenhower answers America' campaign adverts

Question 42

What two American organisations offered low interest loans to families to buy new homes that increased the availability of credit ?

Answer 42

1) The Federal Housing administration 2) Veterans' administration

Question 43

How did the increased use of low interest loans to families to buy new homes by the Federal housing administration and the Veterans' administration lead to a growth in the American economy ?

Answer 43

This is because there was a building boom that followed

Question 44

Give an example of large suburbs that were built during the building boom in the 1950s as a result of an increased availability of low interest loans to families to buy new homes.

Answer 44

New York's Levittowns

Question 45

How many families were New York's Levittowns built for ?

Answer 45

80,000

Question 46

How much did Levittown house cost families ?

Answer 46

$8000

Question 47

What is a limitation for the building boom in the 1950s

Answer 47

there was de facto segregation that existed within Levittowns against African Americans not being able to buy the houses.

Question 48

By how much did Private debt increase from 1958 to 1960 ?

Answer 48

1958 - $104.8bn 1960 - $263.3bn

Question 49

Why did Private debt increase from $104.8bn in 1958 to $263.3bn in 1960 ?

Answer 49

This is because consumers brought cars, fridges, TVs and vacuum cleaners on credit

Question 50

How did the increase in private debt from $104.8bn in 1958 to $263.3bn in 1960 lead to a growth in the American economy ?

Answer 50

It led to even more jobs in manufacturing as more cars, fridges, TVs and vacuum cleaners were being brought.