War- Cold War
10% of GNP continued to be spent on miltary
Space race created jobs
Europe needs money to stop it from turning to communist, $13 billion dollars was sent
War-World War Two
See main notes
Stimulates full economic recovery
1938- Roosevelt reintroduces rearmament
1941- USA spending 4 times as much on miltary as in 1939
USA was untouched by the war- damage
$150 billion was saved
Consumer Goods/ Advertising Boom
After WW2 there was a huge consumer boom, with savings now being able to be spent on consumer goods. They were no longer seen as a luxary, rather a necessity.
This saw an explosion in advertising, with TV providing a platform for advertising. This was also the first time market research was used.
There was an increase in Fridges, washing machines, cars and TV's
In 1946 there was 7000 TV's in 1960 there was 50m. It took until 1940 for a process to be made so that TV's could be mass-produced
There was 67m privately owned cars by the end of 1954. This lead to the creation of drive thru cinemas and resturants
There was a huge housing boom.
People moved to the suburbs, creating a need for more cars to be produced, which in turn created jobs.
People moving away from the cities was known as the 'White Flight'
Levitt houses were created which were an easier way to build houses, however they were built for whites only.
The problem was that life was boring for women as they had nothing to do. Appliances had replaced their housework and they could not get a job. Thus Tupperware parties were created.
After the war there was a huge increase in the birth of babies. They were known as the baby boomer generation
Post war global economic order
After WW2 the new global economic order is created. This was advantagous to the US as America was at the heart of it.
It was shaped at Bretton Woods
GATT- General Agreement on Trade and Tariffs
Electronics- Silicon Valley
In 1946 Harry S Truman was president. He brought in the Employment Act. This commited the government to focus on economic growth. Including tax cuts of $6 billion.
As well as this it spent on construction. 77% compared to 1% in 1929
In 1944 the GI Bill of Rights (Serviceman's readjustment act) was created. It set aside $16 billion to be spent on unemployment benefit, housing, loans, business start ups, education.
2.3 million men were paid to enrol in univerisity. By 1951, 1/2 of all students were veterans