1. The Affluent Society America in the 1950’s

2. America after the War Celebration…. and DEMOBILIZATION 1945 – 12m military 1947 -- 1.6m military

3. Demobilization War industries convert to peace production –Autos, TV's, household appliances, cameras War-time price controls/rationing removed –Prices rise Increased demand –Inflation sky rockets1945-1947 –Labor Strikes (5 million strikers 1946) Truman’s Fair Deal –Taft-Hartley Act Limits union power Many women exit the labor market

5. The Economy Grows in the 50’s “Real Income – up 20% 1950--1960

6. Consumer Society 1950’s We were 6% of the world’s population, producing and consuming 50% of the world’s products.

7. Why were the 50’s so prosperous? Rise in real income/savings from WWII “Pent-up” demand –Little consumer spending WWII/Great Depression New Technologies GI Bill

8. GI Bill of Rights Servicemen's Readjustment Act of 1944 Provides funds for education for Veterans –an estimated 2.2 million veterans received education at colleges and universities –A total of 7.8 million veterans, or 50.5 percent of the World War II veteran population, received training or education under the bill.

9. GI Bill Funds Home Loans –Over 2 million loans by 1950 –Housing starts: 1944 -114,000 1950 - 1.7 million Home ownership increases to 62% of the population by 1960

10. New Jobs Construction Government Jobs Education

11. More New Jobs “White collar” jobs –Big Business –Finance –Advertising (mostly white and male) Service Industry –Insurance –Transportation –Retail –Hospitality MacDonald’s Holiday Inns –Service and repair workers (service jobs > manufacturing jobs) –A shift from producing goods to providing services

12. Why were the 50’s so prosperous? “Bigger is Better” efficiencies in industry –IBM sales grow 10x between 1946-1961 –GM doubles its assets to $2.8 billion in 1960 Conglomerates-large companies with holdings in unrelated industries, brought about by business mergers –benefit: company could grow without violation of anti-trust law –Example: General Electric, Berkshire-Hathaway, Time-Warner, Phillip-Morris

13. Farms Become Big Business Small family farms replaced by agribusiness corporations. –Cost efficiencies on larger farms –Expense of new technologies –Pesticide/Synthetic fertilizers 1940 to 1960 –Farm size doubles –Total farms: 6 million to 4 million (2.3 million now) –Farm population: 30 million to 13 million

14. Mobility Post-war shifts in population –To “Sunbelt” –Rural to Urban (20% of American moved each year of the 50s) The “Automobile Culture” –58 million cars purchased during the 1950s –Highway Act of 1956 $32 billion to build 40,000 miles of roads Interstate Highway System

17. Supporting Businesses

18. Suburbia Small, mass-produced homes that the middle-class can afford

19. “Sunbelt” Growth

20. Homework Read and note Ch 43. Two Americas –Use these key content terms Housing Act 1949 Appalachia Termination policy Voluntary Relocation Program working poor poverty line urban renewal

21. Homework Assignment due next class Read 18.2 “Suburban Lifestyles” p. 606-615 –Notes –Section Review Questions p. 615 # 2-5 Extra Credit Opportunities: –p. 604-605 #1-3 ( up to 5 points) –50s tv or movie critique/comparison –See teacherweb announcements