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Chapter 17 Postwar Confidence and Anxiety 1945-1960

Chapter 17 Postwar Confidence and Anxiety 1945-1960. Describe how the US made the transformation to a peacetime economy. Discuss the accomplishments of President Harry Truman and Dwight Eisenhower. 3. Analyze the 1950’s economic boom. Objectives. Section 1-An Economic Boom. An Economic Boom.

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Chapter 17 Postwar Confidence and Anxiety 1945-1960

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  1. Chapter 17Postwar Confidence and Anxiety1945-1960

  2. Describe how the US made the transformation to a peacetime economy. Discuss the accomplishments of President Harry Truman and Dwight Eisenhower. 3. Analyze the 1950’s economic boom. Objectives Section 1-An Economic Boom

  3. An Economic Boom • After WWII, many worried there would be renewed economic depression. • Felt could not produce enough jobs for all those returning from • the military • Instead, had economic boom (longest period of economic growth • in American history) • This growth fostered widespread sense of optimism about • nation’s future.

  4. Focus Question How did the nation experience recovery and economic prosperity after WWII?

  5. The Nation Recovers From War At end of WWII, August 1945, 12 million Americans in military -factories churning out ships, planes, and tanks to fight war in Pacific -overnight need for huge numbers of military machine and war focus came to end -Washington cancelled defense contracts -millions of defense workers lose their jobs -wartime industries had to convert to peacetime needs

  6. The Nation Recovers From War • American set out to enjoy fruits of peace • Truman responds to: “bring the boys home for Christmas • Starts “demobilization” • July 1946 only 3 million remain in military • Americans happy war over but uneasy about future • -poll in 1945 60% of Americans expected • earnings to fall • -”American soldier…worries sick about • postwar joblessness” reported by Fortune • magazine.

  7. The GI Bill Aids Returning Soldiers Granted veterans a variety of benefits -provided a year of unemployment payments to those who could not find work. -financial aid for those attending college -government loans for those building houses or started businesses

  8. The GI Bill Aids Returning Soldiers Had enormous impact on American society -home loans to Vets fueled upsurge in home construction -led to explosive growth of suburbs Greatest impact on education -encouraged Vets to return or enter college -eligible to receive $500 a year for tuition -$50/month for living expenses -$75/month if married -8 million Vets eventually took advantage of education benefits

  9. A Baby Boom Fills Classrooms Soldiers made up for lost time -quickly married and had children Americans had put off children because of depression and war. Now, confident bad times behind them -started families -population experts called this “baby boom” 1957, peek of boom -American baby born every 7 seconds -4.3 million for the year Between 1940 and 1955, US pop. Grew 27%, from 130 to 165 million

  10. Converting From a Wartime Economy • Unemployment did not materialize • Depression did not return • Problems that did occur: • -experienced skyrocketing prices • -at wars end, federal gov. ended • rationing and price controls, which • had kept inflation in check • Postwar rush to buy goods created • inflationary pressures (to much • money; to few goods) • Prices rose about 18% in 1946 (beef • prices nearly doubled in a year)

  11. The US Dominates the World Economy During Depression could not buy goods desired Economy improves during war, but wartime restriction kept buying down End of war open floodgate to consumer purchases -demand soared -businesses employed more people -created cycle; people bought new goods, more people employed, in turn bought more goods

  12. The US Dominates the World Economy US only developed nation untouched by devastation Had only 6% of world population Produced 50% of world’s total output Allowed Americans to enjoy higher standard of living than any other nation

  13. Technological Progress Boosts Productivity Economy benefitted from numerous technological advances -use of atomic energy from war research -use of computers increased (businesses gradually depend on them) -worker productivity (rate at which goods produced) improved due to technology.

  14. Government Spending Supports Growth Increase in government spending helped economy -outbreak of Korean War gov. committed sign. part of budget to defense spending -military spending led to new tech. development (plastics and new light metal alloys) Marshall Plan, initiated foreign demand for US goods

  15. Checkpoint Question What did many Americans expect to happen to the American economy after WWII?

  16. Truman Overcomes Huge Obstacles

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