1. L19: The Economics of the 1950s Agenda Objective: 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.

2. 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…

3. Changes in Government Services

4. 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?

5. Changes in the Family

6. Clearly Defined Gender Roles

7. 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

8. 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, 1/3 rd of US population lived in suburbs

9. Changes in Consumerism

10. 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

11. 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

12. The First “Multiple Purpose” Charge Card is Invented 1950 the Diner’s Club Card is produced as the first multipurpose credit card

13. Second Wave of Mass Advertising and Mass Consumption What type of products are being advertised in the 1950s?

14. Changes in Work

15. 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.

16. Changes in Science/Technology

17. Scientific Progress (for Cold War Purposes) 1951 -- First IBM Mainframe Computer 1952 -- Hydrogen Bomb Test 1953 -- DNA Structure Discovered 1954 -- Salk Vaccine Tested for Polio 1957 -- First Commercial U. S. Nuclear Power Plant 1958 -- NASA Created

18. 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?