Topic 4 - Economic transformation

Question 1

Government policies to help growth

Answer 1

1944 Economic Bill of Rights → committed federal government to full employment and welfare provision
1946 Employment Act → formalised the Bill

Question 2

The Cold War

Answer 2

Fuelled economic boom → need for military spending
Marshall Aid → $13 billion given to w. European countries → the money was often used to buy US goods

Question 3

GI Bill of Rights 1944

Answer 3

Offered grants to ex-servicemen for education or business
Offered home loans to help with buying a home → mortgages available up to 90% of cost → 2.4m benefited

Question 4

Growing mobility

Answer 4

Car sales rose from 69,500 (1945) to 6.7 million (1950)
Lots of choice for buyers → 350 different models by 1961
Impact → Roadside hotels, garages, and gas stations built

Question 5

Home ownership

Answer 5

Family homes built → 114,000 (1944) to 15 million (1950)
Rise from 50% (1950) to 60% (1960) of home ownership
Homes filled with consumer items → appliances, furniture

Question 6

Growth of suburbs

Answer 6

People living there grew from 17% (1920) to 33% (1960)
Impact → Growth of shopping malls → 8 (1946) to 4,000
Levittown homes → Prefabricated (prebuilt) constructions

Question 7

Growth of consumer society

Answer 7

TV sets in homes grew from 0.4% in 1947 to 55% in 1954
90% of US families had fridges and 75% had washing machines and telephones by 1951

Question 8

Extent of consumption

Answer 8

Early 1950s → USA had 6% of world’s population but consumed 33% of all goods BUT not all groups shared in this prosperity, e.g. southern states had less wealth than northern states