Economics
The economy during the 1950s thrived. From
the end of World War II up until the sixties, the United States became
the richest nation in the world. The Gross National Product went from $212
billion in 1945 to $504 billion in 196O. The average income per person
also increased, going from $1,526 to $2,788. According to Newsweek,
in 1957 it was estimated that in the U.S. young people had about $9 billion
extra left over from income per year (Edey 56). The two main economic competitors,
Europe and Japan, were both repairing severe war damage, so the U.S., with
very little competition, was able to prosper. Also, during the war people
put their money into savings because many desirable items were either rationed
or not produced at all. Then, once the war ended and items were freely
made and sold, people had a lot of money to spend.
A component which helped build up the economy
after the war was the invention of the credit card in 1950. The first was
a Diners' Club card, invented by Ralph Scheider, which enabled members
to eat at 27 restaurants in New York and pay at the end of the month. With
this new invention, people were able to buy all the items they were not
able to during the war, even if they did not have enough money at that
specific time.
Following WWII, there was a baby boom, where
the number of children increased by 11.2 million. As soldiers returned
from the war, the number of births increased dramaticaly. During the depression
there was an average of 19 births in 1,000 where as at the peak of the
baby boom, mainly during 1947, there were about 26 births for every 1000
people (Cayton 745).
Because of the new babies, homes were needed
for the bigger families. Therefore many families moved to the Suburbs;
this migration is known as the development of Suburbia. To house the new
families, mass-production of houses occurred, a technique developed by
William J. Levitt. This method was effective, but created a monotonous
landscape. Also, with more people living in the Suburbs, they needed cars
to comute and get around, causing the car industry to prosper (see Social
Changes).
Major corporate growth also occurred in the
1950s. A few huge firms began to dominate certain industries; for example,
General
Motors, Ford, and Chrystler controlled the car industry. Remembering
the Depression of the '30s, many corporations bought lots of small companies
of varied lines of business. This way, if one area failed there were others
to fall back upon. Another huge success in industrialization was the development
of the franchise system. This system allowed a store to open under the
same name and system as another, already existing store. In the '50s McDonalds
became a huge chain which developed under the franchise system, and soon
Burger King and Kentucky Fried Chicken followed its example. These chains,
along with others, soon caught on, and they provided many new jobs. They
were also good for business because one store could prosper on the reputation
of another with the same name. The one bad thing about the franchise system
was that it put small unique stores out of business, creating a monotony
similar to that of the suburban houses.
Many technological advances helped the growth
of the economy. Computers, calculators, transistors, washing machines,
vacuum cleaners, and microwaves became popular, and most were very affordable.
The biggest item to catch on though was the television. Developed in the'30s.
it became very widespread in the '50s. By 1953, two thirds of American
families owned televisions, and by '55, the average family watched four
to five hours a day (Cayton 743). The comercials on TV also helped the
economy; not only did they provide money to the broadcaster, but viewers
were strongly influenced by these comercials and many went out and bought
the advertised items. (see Science and Technology)
With the new technological advances, the majority
of the workers went from blue-collar to white-collar workers. Machines
were able to produce goods faster and more efficiently, so more people
were needed to provide services instead of create items. For the remaining
blue-collar workers though, conditions improved and wages rose.
In short, the economy in the 1950s flourished,
and the society in which people lived reflected this. Their affluence could
be seen in the fashion, technological growth, reproduction, migration,
and many other aspects of their lives. After putting up with rationing
and shortages during the war, people felt they deserved to buy, and in
turn this helped develop the economy and allowed them to purchase even
more.
very good: Gross National Product went from $212 billion in 1945
to $504 billion in 196O. The average income per person also increased,
going from $1,526 to $2,788. According to Newsweek, in 1957 it was
estimated that in the U.S. young people had about $9 billion extra left
over from income per year
credit card: invented by Ralph Scheider, enabled members to eat at
27 restaurants in New York and pay at the end of the month
baby boom/Suburbia (see social changes)
corporate growth
1. huge firms began to dominate industries (ex. General Motors, Ford,
and Chrystler controlled the car industry)
2. corporations bought many sm. companies of varied lines of bussines
so if one failed, there were others to fall back on (remembering Depression)
3. franchise system: allowed a store to open under same name
and system as another, ex. McDonalds (followed by Burger King + KFC), provided
jobs and advertising, created monotony and put sm. unique stores out of
business
Computers, calculators, transistors, washing machines, vacuum cleaners,
and microwaves became popular, and most were very affordable
-biggest success was TV: By 1953, two thirds of American families
owned televisions, and by '55, the average family watched four to five
hours a day. advertisements gave $ to broadcaster and influence people
to buy the product
most workers went from blue to white collar because of new faster machines
