Impact of WW2

• U.S. economy experienced a massive mobilization effort

  World War II
• By 1944, unemployment had dropped to a record low of 1.2%
• Gross National Product (GNP) was $200 billion


  1940
• Gross National Product (GNP) was $300 billion


  1950
• Gross National Product (GNP) exceeded $500 billion


  1960
• The United States became the richest nation globally
• Automotive industry transformation

  1. Previously produced cars

  2. Retooled to manufacture war supplies

  3. Detroit Tank Arsenal operated by Chrysler produced 28-ton tanks using mass-production methods
• War Production Board (WPB)

  1. Regulated the economy during wartime

  2. Allocated resources towards military production

  3. American economy became heavily geared towards producing war materials
• With rationing lifted and savings accumulated during the war years, Americans' disposable income increased significantly
• Americans were saving an average of 21% of their personal disposable income


  1945
• Americans were saving an average of 3% of their personal disposable income


  1920s
• New car sales quadrupled


  1945 to 1955
• Around 75% of American households owned at least one car


  End of 1950s
• Television became a staple in American households, with families of all income brackets purchasing TVs at a rate of five million per year
• Americans purchased 20 million refrigerators, 21.4 million cars, and 5.5 million stoves


  1945 to 1949
• The GI Bill of Rights provided returning veterans with opportunities for education, housing, and other benefits
• The GI Bill had helped over two million veterans attend college


  1949
• Residential construction companies

  1. Capitalized on the housing demand

  2. Employed mass-production techniques to build affordable homes

  3. Levitt & Son built three residential communities between 1946 and the early 1960s, totaling over 17,000 homes
• By the end of the 1950s, suburbanization was in full swing, with families moving out of crowded urban areas into newly developed suburbs
• This trend was facilitated by Federal Housing Administration (FHA) loans and mortgage guarantees
• The post-war period saw a reaffirmation of traditional gender roles, with women primarily responsible for household management and child-rearing
• Consumer goods marketed towards women emphasized domesticity and efficiency
• Companies like Frigidaire expanded their home appliance business


  • Introducing products like clothes washers, dryers, dishwashers, and garbage disposals
• The demand for consumer goods drove industrial expansion and technological innovation
• Companies retooled their production lines to meet consumer demands, leading to innovations in manufacturing processes and product design
• Technological innovations, such as the development of new materials and production techniques, revolutionized industries like automotive, electronics, and home appliances
• The post-war era witnessed the rise of mass media and advertising as powerful forces shaping consumer culture
• Television emerged as a dominant medium for advertising, allowing companies to promote their products directly to consumers
• Advertisements often portrayed the suburban lifestyle as the epitome of the American dream, showcasing consumer goods as essential elements of modern living
• GI Bill of rights improved the employment opportunities for 8 million veterans. It offered free vocational training and higher education, contributing to an increase in the percentage of college-educated Americans from 10% in 1939 to 15% in 1948. Over $20 billion was distributed to veterans between 1945-1955.
• Black Americans did not benefit as much from this prosperity as suburbs were not open as much to Black Americans
• The disparity in the implementation of the GI Bill meant that gaps widened between whites and blacks fro education, wealth and civil rights this was due to Southern democrats who feared that a successful Double V campaign would signal the end of Jim Crow, to ensure this was not the case, they made it so that the GI Bill was state administered. Entraining riots similar to those in 1919 in Chicago.
• The median income between white and black household in 2019, was $30,000 showing the lasting impact of the GI Bill