Post Ww1 Unit 2 Research Paper

The post-WWII years were a very prosperous time for America, due to numerous factors. However, the two major factors that help produce this economic growth are birthrates/consumer spending increases, and Government spending. How birthrates and consumer spending help produce economic growth is very easy to understand. First off, during WWII most people saved their money, seeing that there were very little consumer goods to spend it on, so once the war was over they had the money to spend. Once American soldiers returned from war there was an obvious rise of birthrates, and the creation of families. These new members of the “middle-class” would begin to spend their money, because they were now a part of the “people of plenty” group. They lived in a

Also, advertising arose during this time, along with the notion of “buy now and pay later”. All these things allow for these new middle-class families to live the “American Dream” and live a prosperous life, and in doing so they also spurred America’s economy. Government spending also help produce economic growth as well. It did this with things like defenses contracts, which were important because we were in the early stages of the Cold War and the ensuing arms race had begun. This, just like during the war, would keep factories producing military supplies. They government also invested in the interstate/highway system. This in turn sparked an increase in the automotive industry (cars are now being owned in a higher volume), and the trucking industry. Other industries that are directly related to these industries as well as the building of roads saw an increase as well. These include the oil, concrete, and tire industries. All this surge in industry would directly help produce a stronger economy in America. The housing industry also sees a surge because of the