American Economy 1950s

American Economy, 1950s Prosperity

When World War II came to an end, Americans feared that another depression might begin. This fear didn't last because, by the end of the 1950s, Americans believed that the government could prevent another recession. Americans in the 1950s had better living standards than Americans of the past. In fact, they had the highest living standards in the world!

People bought more on average than they had in the past. This consumer market created high demand for products like washing machines, televisions, and cars. Factories found ways to automate some procedures, allowing them to keep up with the need for products without hiring more workers.

Fig. 2: American factories found ways to create more products without hiring new workers.

For consumers, products became more accessible than ever thanks to credit! Americans wanted televisions and radios, which were then used to market the newest and best products. They wanted to keep up with the trends that they saw on television. Children wanted Barbie dolls and hula-hoops, while adults wanted poodle skirts and 3-D movies.

American Economy, 1950s Development

The late 1940s saw many changes for the American people that would affect the economy of the 1950s. World War II and the Great Depression were both over. Americans decided that this would be the ideal time to have children. The increase in babies born in the late 1940s and throughout the 1950s is called the Baby Boom.

Fig. 3: The Baby Boom began in 1946; the American population grew from 150 million to 179 million between 1950 and 1960!

As the economy continued to grow, Americans felt they could have larger families. This increase in children led to increased demand for children's products. Women left their jobs so that they could focus on raising the children. When the kids were old enough to go to school, the education system was strained to meet the influx of students.

American Economy 1950s Eisenhower Era

In 1944, the G.I. Bill was passed, which gave World War II veterans financial assistance. During World War II, soldiers referred to themselves as G.I.s, where the bill got its name. Unemployed veterans were given a weekly stipend of twenty dollars. They were able to go to college or vocational school, and the government would pay up to $500 in tuition plus an allowance for expenses.

Veterans could apply for loans to buy homes, businesses, or even farms! Veterans would also have their medical care provided for under the G.I. Bill. By 1956, over ten million veterans benefitted from the G.I. Bill.

Some veterans took advantage of the G.I. Bill. Fake colleges would offer rewards, like a free television, if someone registered with the school. The government would pay the fees, veterans would receive free televisions, and the fake university would get the government's money. This became an issue under the presidency of World War II General Dwight D. Eisenhower.

Eisenhower had a study conducted to determine if the government should pay for veterans' higher education. It decided that if the government continued to do so, it would discourage career soldiers. Eisenhower was a general before he became president, and wanted people to remain in the military. He used the abuse of the G.I. Bill as a reason to end government funding for veteran education.

The National Defense Student Loan (NDSL) Program in 1958 replaced this portion of the G.I. Bill. NDSL was accessible to all Americans. It would give loans with low interest to Americans in need. The goal was to encourage Americans to attend four-year public colleges to get degrees in specific fields. These degrees would be helpful if America found itself in another war. At the time, America feared going to war again.

American Economy, 1950s Cultural and Societal Changes

Americans began developing their identities further during the 1950s because of television and radio programs. Sitcoms like "I Love Lucy" and "Leave it to Beaver" showed middle-class white families. These shows aired an idealized version of American life that emphasized a certain normality. The "normal" was white, middle-class consumers who spent plenty of time with their families. Television shows and commercials encouraged Americans to spend.

Fig. 4: America's Pastor Billy Graham

Another thing Americans watched on television was preachers like Fulton J. Sheen, Billy Graham, and Norman Vincent. These preachers emphasized the importance of religion to the Americans watching. Billy Graham was considered "America's Pastor". He even met more than ten United States Presidents in his lifetime.

Life in the Suburbs

William Levitt used his experience of building for the United States military to mass produce homes. The parts for the homes were created in factories and then sent to lots where Levitt's team would assemble the home. The homes had four models, and every fourth house was the same. So, a boy visiting a friend who lived down the street might have a home constructed the same way.

The first of these communities that Levitt built was called Levittown in Staten Island, New York. It was very successful, so other home constructors began to do the same. This allowed for homes to be mass-produced and created a housing boom. 75% of home expansion was into suburbs!

Fig. 5: Levittown, Staten Island, New York

Suburban life offered an escape from the hustle and bustle of city life, but it wasn't accessible to everyone. Southern America has still segregated, so many communities were white only. People of color weren't allowed to purchase the homes or move into the communities.

The shift to suburbia meant that Americans had to drive farther to work. Cars became a necessity of American life. As cars became more and more common, so did drive-throughs and drive-ins. Drive-throughs existed for restaurants, banks, pharmacies, theaters, and even churches. Americans could watch movies or listen to preachers, all from the comfort of their cars!

Rock 'N Roll

Rock music became popular with teenagers in the 1950s. They purchased records, went to concerts, and styled themselves like their favorite icons. Artists like Buddy Holly, Doris Day, and Elvis Presley were very popular. Rock music was an evolution of country music and jazz. Elvis Presley presented a "safer" version of jazz music because he was a white man.

Teens could listen to their favorite rock 'n rollers through television shows like "American Band Camp". Rock could help teenagers create a new and separate identity from their parents. This new divide between generations is called the generation gap.

American 1950s: Peacetime Economy

The 1950s saw many changes. Government spending during World War II ended the Great Depression. The government continued to spend after the war ended by building schools, homes, and infrastructure. Veterans could find assistance through the G.I. Bill.

With the recession and the war over, Americans felt hopeful. Americans had children, bought homes, and invested in the economy by becoming consumers. Companies found new ways to advertise the American dream lifestyle through television and radio. The economic boom of the 1950s was intertwined with the changes witnessed in American culture.