Unit 8: Topic 4 - Economy after 1945 Flashcards
What is redlining? What was its significance with the suburbs?
Redlining is the practice in which banks withdraw their services from neighborhoods that they marked as hazardous. The term gets its name from sections of maps that were colored red to indicate neighborhoods where banks will not offer their services.
Historically, banks redlined predominantly African-American neighborhoods, which prevented them from services, particularly in applying for mortgages. Many African-Americans could not get loans, mortgages, and other forms of credit to finance new homes and other investments, which restricted the number of African American businesses and homeowners.
What is the military industrial complex?
As a result of the Cold War, the United States went to great lengths in the arms race to catch up and beat the Soviet Union. The Military-Industrial Complex (MIC) was first introduced in President Dwight D. Eisenhower’s 1961 State of the Union Address, where he warned of the US’ constant spending toward the military.
Eisenhower warned that constant military spending, while well intended for the security of the United States, may actually be worse for Americans than good.
What is a Levittown?
In response to the increased housing demand from citizens, the construction firm Levitt and Sons constructed the first suburban neighborhood in Nassau County, Long Island, from land initially used for agriculture. These Levittowns caused the eruption of a new model of home construction that prioritized mass construction of homes using the principles of industrial production.
What were some of the causes of the baby boom?
Due to hardships created by the Great Depression and the United States’ total war during WWII, the country’s birth rate was at an all-time low as many couples delayed having children. As the U.S. won WWII and it’s economy began to flourish, couples who delayed their parenthood had many children in a short period of time, partially due to a new confidence in the United State’s economy and parents’ ability to support more children. This peaking birth rate period is known in U.S. History as the Baby Boom.
What was the GI bill and how did it come to be?
After World War II, millions of Americans awaited return to American society by reuniting with their families and entering the labor force. The US government was concerned that the sudden wave of new workers in an already prosperous labor market might cause economic wreckage. As a response, President FDR signed the Servicemen’s Readjustment Act, later known as the GI Bill, which assisted WWII veterans in integrating back to American society.
The bill’s passing helped veterans in various ways; for example, veterans were guaranteed loans for mortgages and other capital ventures. Returning soldiers were given year-long unemployment benefits, and soldiers looking to pursue higher education were given stipends and loans paid for by the government.
What are the sunbelt states and what are their significance?
The sunbelt states are a region in the United States that spans from the Southeast to Southwest. The lower taxes, cheaper cost of living, cheaper housing, and warmer climate attracted many GIs and their families to migrate to the south.
With these constant waves of migrants moving down to the sunbelt, many states saw significant growth in their local economies and populations. U.S. politics also saw change as the population shifted; the south gained more seats in the House of Representatives and a greater ability to influence the electoral college.
What was the Fair Deal, and what was its significance?
The Fair Deal was a set of proposals under President Harry S. Truman to expand the programs and resources introduced to the American people under FDR’s New Deal. Some Fair Deal proposals included expanding social security programs, a nationalized health insurance plan and increasing the minimum wage. Truman had much support from labor unions, civil rights groups, and other progressive organizations.
But many of Truman’s proposals were never passed due to Truman’s political disagreements and Cold War concerns with a republican-dominated congress. However, some of the proposals under the Fair deal were passed by Truman’s successors, such as expanding social security and healthcare access. The Fair Deal also inspired future initiatives such as Lyndon B. Johnson’s Great Society
What were some of the reasons for the rise in suburbia?
During the baby boom, millions of Americans sought housing in cities already populated by workers and littered with poor conditions. This increase in housing demand caused housing prices to skyrocket in urban areas, leading those wanting to start families to look elsewhere.
With the rise in industrial production/technologies and assembly line production, construction firms could mass-produce houses in various open areas. These areas became known as suburban housing and were much cheaper compared to locations in the city. With lower prices and more space, many Americans flocked over to suburban neighborhoods to have their homes.
Additionally, thanks to the overall wealth increase amongst Americans and the greater availability of government-backed mortgages under the GI bill, many Americans were able to finance homes and increase the demand for suburban living.
