The growth of the American economy in the 1950s Flashcards
What was the level of unemployment at the end of Truman’s presidency ?
2.5%
What was the level of unemployment by the end of Eisenhower’s presidency ?
6.6%
What was the average level of inflation under Truman ?
3.1%
What was the average level of inflation under Eisenhower ?
1.4%
What was the GDP in 1950 under Truman ?
$355 billion
What was the GDP in 1960 under Eisenhower ?
£488 billion
What was the average disposable income per capita in 1946 under Truman ?
$1026 ($1720 in 1940)
What was the average disposable income per capita in 1960 under Eisenhower ?
$2699
How did Purchasing power change under Eisenhower ?
By the end of Eisenhower, there was an increase of 30% in purchasing power
How much of the population was in poverty by the end of Eisenhower’s presidency ? (compare to Truman)
Truman - 28%
Eisenhower - 25%
How much had the economy grown by, by the end of Eisenhower’s presidency ?
37%
Compare the percentage of the population who had a TV in 1950 compared to 1960 ?
1950 - 9%
1960 - 90%
What was the Diners club ?
a credit card company
When was the Diners club founded ?
1950
How many members did Diners club have at the end of 1950 ?
20,000
How many members did Diners club have at the end of 1951 ?
42,000
In the early 1950s, how much was Diners club charging card holders ?
a $5 yearly fee
When was the American express credit card launched ?
1958
Give 4 reasons as to why there was the growth of the American economy in the 1950s
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
What were war bonds ?
an investment scheme putin place by the government during WWII
What happened to the War bonds put in place by the government during WW2 ?
They matured and paid out (1948)
How much money was paid back to those who had invested in war bonds in the years that followed WW2 ?
over $185 million
What did government spending on the GI bill aim to give veterans ?
a good quality of life, as a reward for their service
How did the GI bill lead to a growth in the American economy during the 1950s ?
It led to a boost in housebuilding and an increase in the numbers of educated people in the population
How much was spent annually on the military by Eisenhower ?
$40 billion
For what period of time did the Baby boom last ?
1946 - 1959
How did the Baby boom lead to a growth in the American economy in the 1950s
It led to an increased demand for goods as well as housing
What kind of goods experienced an increase in demand as a result of the baby boom ? (3)
1) Baby food
2) toys
3) nappies
What new demographic emerged in the late 1950s as a result of the Baby boom from 1946 - 1959 ?
teenagers
How were teenagers described by the life magazine in 1959 ?
A ‘$10 billion’ power
Why were teenagers described as a ‘$10 billion’ power by the Life magazine in 1959 ?
Because of their willingness to spend money on food, cosmetics and entertainment.
In 1957, how much was it estimated that the teenager spent per week ?
$10 - $15
The 1950s saw an explosion of newspaper, _______, and __ advertising encouraging American people to become consumers
radio, TV
How much was spent on advertising in 1950 ?
$6 billion
How much was spent on advertising by 1963 ?
$13 billion
What were the factories that used to make military equipment during WWII making in the 1950s ?
They were mass producing consumer goods
How did the increase in TV sales lead to a growth in the American economy in the 1950s
It created a market for advertisers to encourage American people to become consumers
Give an example of a famous advertiser who used the increased ownership of TVs by the American people to encourage consumerism ?
Edward Bernays
Who was Edward Bernays ?
a famous journalist who popularised the idea that large masses of people could be guided through mass media
Give an example of a politician who used advertising more effectively
Eisenhower
How did Eisenhower use advertising more effectively ?
In his 1952, ‘Eisenhower answers America’ campaign adverts
What two American organisations offered low interest loans to families to buy new homes that increased the availability of credit ?
1) The Federal Housing administration
2) Veterans’ administration
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 ?
This is because there was a building boom that followed
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.
New York’s Levittowns
How many families were New York’s Levittowns built for ?
80,000
How much did Levittown house cost families ?
$8000
What is a limitation for the building boom in the 1950s
there was de facto segregation that existed within Levittowns against African Americans not being able to buy the houses.
By how much did Private debt increase from 1958 to 1960 ?
1958 - $104.8bn
1960 - $263.3bn
Why did Private debt increase from $104.8bn in 1958 to $263.3bn in 1960 ?
This is because consumers brought cars, fridges, TVs and vacuum cleaners on credit
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 ?
It led to even more jobs in manufacturing as more cars, fridges, TVs and vacuum cleaners were being brought.
