1950s Economy Essay

Entering the 1950s, the United States was an ever changing society. Following the end of World War II, the United States was unrecognizable from its 1930, Great Depression state. By 1950, signs of new, unfamiliar American affluence were everywhere. More money in Americans’ pockets brought a new idea of society along with it.
In the years following World War II, the United States experience astounding growth that is often time described as an “economic miracle.” America was quickly becoming the richest country in the world. The US gross national product, a measure of goods and services produced, grew from $200 thousand-million in 1940 to $300 thousand-million in 1950 to more than $500 thousand-million in 1960. The growth in GNP also meant

more income for American families. When adjusted to inflation, the average family income tripled. With more money, more and more American began to consider themselves a part of the beloved middle class. These years also saw a drop in poverty. Between 1950 and 1970, poverty in the United States declined by over sixty percent.
The American workforce also saw change and growth entering the 1950s. With new technological advancements and automated production, the need for manual labor slowed. Fewer workers were needed to produce goods, while college-trained researchers, engineers, managers, and service personnel were in high demand. By 1956, a majority of Americans held white collar jobs that often guaranteed annual wage, long-term employment contracts, and other benefits. With these new changes, labor militancy was undermined and a few class distinction began to disappear. While industrial American was seeing growth, farmers faced tough times. Family farms found it hard to compete with consolidated, big business farms. This caused many family to abandon their farms and move elsewhere.
Although it is impossible to pinpoint a certain source for the astonishing growth the United States had seen post-World War II, there are several factors that contributed to the surging economy. One contributing factor was cutting government spending increased the US economy. In 1929, only one percent of the government budget was spent on GNP, but by 1955, it had increased to seventeen percent. A majority of this increase came from military spending until the end of the Korean War. Also, population growth was partially responsible. After World War II, the population increased at twice the rate it had a decade earlier. This was caused by the postwar baby boom of the 1950s. The increased number of Americans translated to an increase in demand by consumers, spurring economic growth.
Not only did the new affluence impact solely American economics, it impacted social America.

First, the automobile was revolutionized. Between 1946 and 1955, the number of automobiles produced quadrupled. Americans began to see automobiles as a status symbol in popular culture. Owning a car meant being able to fully participate in American society and fulfilling a social responsibility. More Americans purchasing automobiles also boosted the economy. Second, the housing market began to explode after World War II. In the postwar years, millions of Americans, especially young or starting families, moved to the suburbs. With a housing shortage in the late 1940s, builders like William Levitt and Sons transformed real estate development. Levitt and Sons bulldozed farms and fields on the outskirts of large cities, building modest, “cookie-cutter” houses. Levitts mastered the technique of mass producing inexpensive houses in a short amount of time. The 1950s saw thirteen million new homes constructed, with 1955 seeing 1.3 million housing starts alone. Suburbs also brought in businesses to the new areas. Large shopping centeres with easy parking and convenient evening hours allowed customers to avoid shopping in the city entirely. Lastly, new highways were built to create better access to the suburbs. The Highway Act of 1956 provided the largest public works expenditure in United States history to create more than 39,000 miles linking the country

together.
With the US hustling and bustling with new suburbs, cars, and growing economy, it allowed for change in society.

Television became widely marketed across the nation. In 1949, consumers were buying 250,000 sets a month, and by 1960, three-quarters of all American families owned at least one set. This set in motion an industry that is still popular today. Shows like Howdy Doody Time, The Mickey Mouse Club, I Love Lucy, and Father Knows Best captivated audience nationwide on a weekly basis. Along with new television shows, American were being exposed to increasingly sophisticated advertisements for products “necessary for the good life.” Americans also felt the need to catch up on subjects like science, technology, and education. In 1957, when the Soviets launched Sputnik, the first satellite launched into orbit, Americans and the government felt the need to invest in education. Suburban parents approved ninety percent of proposed school bond issues during the 1950s. The new middle class was also America’s first college-educated generation. With an increase in funding and value, more and more students began attending college. Church also surged in the postwar years. Membership rose from 50 percent in the 1940s to 63 percent in 1960. Suburban families valued the church’s role in promoting family togetherness and social

cohesion.
All in all, the economic effects of post World War II brought radical changes to the American lifestyle. The creation of a sound economy made many American consider affluence a norm. America’s growing wealth also provided the opportunity for Americans to improve their lives and meet social needs. In the 1950s, America became a middle class society, a place in which everyone was either in the the middle class, soon to become a part of it, or aspiring to become part of it.