L19: The Economics of the 1950s

AgendaObjective:1. To review various

facets of life in the 1950s and develop an argument about the economics of the 1950s

Schedule: 1. Lecture &

Discussion

Homework:

1. I will not be in class on Tues 4/14. Please watch linked video on LBJ and war on poverty for Tues 4/15. Website updated by late tonight.

The Economy in the 1950s• The 1950s saw tremendous economic

prosperity.• But how and why was economy was

booming? – Complicated:

• Intersecting set of changes in government services, family life, consumer demand, workplace structure, and science/technology

– We will walk through the changes happening in each of these domains and then try

to put it all together…

Changes in Government Services

The G.I. Bill• Officially titled Servicemen’s Readjustment Act of 1944• Provided WWII vets with:

– College or vocational education– One year of unemployment compensation– Loans to buy a home– Loans to start a business

• This bill radicalized the American economy by drastically changing the standard of living for most Americans. How so?

Changes in the Family

Clearly Defined Gender Roles

Baby Boom• From 1945-1961 more than 65 million children

were born in the United States• In 1957 there was 1 baby born every 7 seconds• Several reasons for the boom:– Young couples who had wanted to get married but

had to wait because of the war were now able to– Pop culture (TV, magazines) encouraged marriage

and family– The government encouraged marriage with benefits for home buyers

The Creation of Suburbs• People began to move out of the cities and into the

suburbs.• Why?

– GI Bill offered low-interest housing which made houses more affordable

– People were having larger families and needed more space– Highway system made living outside of the city, but

working the city possible– “White Flight”

• Example:– Levittown in Long Island

• In 1949, William Levitt produced 150 houses per week.• Houses could be bought for $7,990 ($78,800) or $60/month ($592) with no down payment.

– By 1960, 1/3rd of US population lived in suburbs

Changes in Consumerism

Emergence of A Car Culture• Eisenhower Interstate Highway System 1956

– 41,000 miles of highway built– $32 billion dollars– Largest public works project in American history

• Need for cars coupled with increased affordability produces a rapid increase in the number of families owning cars– Car Registrations 1945: 25 million– Car Registrations 1960: 60 million– Families with 2 cars doubled from 1951-1958– More people are driving!

• National service companies are created for the first time

– McDonalds, 1955

Changes in Television•In the 1950s more people owned TVs than ever before

– 1946: less than 10,000 TVs in the US

– 1960: 60 million TVs in the US

•Emergence of the Sitcom•Shows celebrated American “values”

– Leave it to Beaver– Superman

•Shows glorified the American past

– Westerns•Commercials

The First “Multiple Purpose” Charge Card is Invented

• 1950 the Diner’s Club Card is produced as the first multipurpose credit card

Second Wave of Mass Advertising and Mass

Consumption• What type of products are being

advertised in the 1950s?

Changes in Work

Changes in Work• Automation:

– 1947-1957 factory workers decreased by 4.3%, eliminating 1.5 million blue-collar jobs.

– By 1956 more white-collar than blue-collar jobs in the U. S.

– Computers First IBM mainframe computer (1951).

• Corporate Consolidation:

– By 1960 600 corporations

(1/2% of all U. S. companies)

accounted for 53% of total

corporate income.

Changes in Science/Technology

Scientific Progress (for Cold War Purposes)

1951 -- First IBM Mainframe Computer1951 -- First IBM Mainframe Computer

1952 -- Hydrogen Bomb Test1952 -- Hydrogen Bomb Test

1953 -- DNA Structure Discovered1953 -- DNA Structure Discovered

1954 -- Salk Vaccine Tested for Polio1954 -- Salk Vaccine Tested for Polio

1957 -- First Commercial U. S. Nuclear1957 -- First Commercial U. S. Nuclear Power Plant Power Plant

1958 -- NASA Created1958 -- NASA Created

Economy of the 1950s

• So consider all of these factors together…– Government Services– Family– Consumerism–Work

• How would we characterize the economy of the 1950s?