13-1 An Economic Boom Warm-Up – What’s a Boom? Economic? Baby?
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Transcript of 13-1 An Economic Boom Warm-Up – What’s a Boom? Economic? Baby?
13-1An Economic Boom
Warm-Up – What’s a Boom?
Economic?Baby?
The Nation Recovers from War
• Almost overnight the need for military and war good ends.
• Millions of workers lose jobs.• Demobilization – bringing home the
military
• GI Bill of Rights – veteran benefits – one year unemployment pay if unable to find work, financial aid for college, government loans for housing and businesses.• Helped home construction• Growth in suburbs• Increase in college students
• Returning soldiers married and had families = Baby Boom – increase in births between 1845-1964.
• Economic problems inflation (included skyrocketing price)s when rationing ended. Postwar rush to buy goods that were not available during the war. Too much money to spend (made good money but could not buy anything during the war)
US dominates World EconomyConsumer purchases increase – demand increases.
Demand for goods
increases
Businesses employ more
people to make goods
People making
money so they buy
more goods
Businesses hire more workers
More people making
money so they buy
more goods
US only developed nation not devastated by war producing 50% of output of goods!
Technology Progress Boosts Productivity
• Numerous technological advances• Atomic energy• Use of computers
Worker productivity improves as a result of technology.(the rate at which goods are produced)
Government Spending Supports Growth• Defense Spending
• Korean War – US again spends money on military• Leads to development of new technologies and new materials
• plastics• New lighter metal alloys
• Marshall Plan (aid to Western Europe post WWII) leads to increase in foreign demand for goods
CHECKPOINT
What did Americans expect to happen to the American economy after WWII?
Truman Overcomes Obstacles• One of the more difficult times in US history
• Beginning off the Cold War• Communist take-overs in Europe and Asia
• Civil Rights• Angers segregationists when he establishes a committee to
investigate race relations• Desegregates the military
• Inflation in US• Labor unrest in US
• Trade unions want pay increases – steel, coal, railroad, and auto strikes
• Taft-Hartley Act – outlaws a “closed shop” where only union members can be hired.
Truman upsets Dewey
Wro
ng!
• 4 parties ran in the election of 1948• Truman (Democrat)• Dewey (Republican)• Thurmond (State’s Rights) Southern Democrats upset by civil rights • Wallace (Progressives) Democrats upset on foreign policy
Truman won by a narrow victory
Fair Deal
Truman’s program that would strengthen New Deal Programs (from Roosevelt) and establish new programs like national health insurance.
Failed to win Congressional approval for most of Fair Deal proposals
Checkpoint
Why were workers dissatisfied during the postwar period?
Eisenhower’s Middle PathWanted by both Democratic & Republican Parties
• Friendly, reassuring• Calm personality = “middle road” in liberal/conservative• record of service and honesty• Military background
liberal Conservative
Fed government
too large
Not repealing New Deal
programs like SS and min wage
Created interstate highway system & spent federal dollars on education for scientists
His Presidency = Prosperous, peaceful, and politically tranquil in 20th century
Check Point
Why did federal spending increase during Eisenhower’s presidency?