The Postwar Economy of the 1950’s By Angela Brown

Bellringer: Think and Write Brainstorm a list of the inventions that would be completely new to a person from the 1950s if he or she were suddenly transported to the present. What modern invention do you think is the most important today?

Business Reorganization U.S. embarked on one of its greatest periods of economic expansion GNP: 212 billion in 1945 to $504 billion in 1960 Per Capita income – average income per person, increased from $1526 to $2788

GM’s Ford, Chrysler controlled automobile industry General Electric and Westinghouse controlled electrical business

 Giant corporations feared investing resources in a single business due to great Depression became Conglomerates – large corporation that owns many smaller companies that produce entirely different goods and services Is the second largest media conglomerate after AOL Time Warner.

1954 Ray Kroc purchased Mac Donald’s and built a nationwide chain Others quickly saw benefits in selling franchises – the right to open a restaurant using a parent company’s brand name and system

Television By /3 of all families owned a TV By 1955 watched 4 to 5 hours a day on average Howdy Doody, The Mickey Mouse Club, American Bandstand, I Love Lucy, and Father knows best Howdy Doody and Buffalo Bob Smith &tbnw=88&prev=/images%3Fq%3Dhowdy%2Bdoody%26hl%3Den%26lr%3D&oi=imagesr&start=2

TT hree networks controlled TV programming. TT hey raised money through advertising TT he companies got their monies worth – America bought atlantaantiquegallery.com/gallery/i-4920_ice_cream_sign_1950s.html

The Computer Industry Grace Hopper, researcher at Harvard University computation lab created software that runs a computer. Hopper coined the phrase “debugging” She removed a moth 1948 Bell telephone lab invented transistor – tiny circuit device that amplifies, controls, and generates signals

Giant machines that filled room could now fit on a desk due to transistorGiant machines that filled room could now fit on a desk due to transistor The Census Bureau purchased one of first computer systems for 1950 censusThe Census Bureau purchased one of first computer systems for 1950 census

Nuclear Power Generation of electrical power through the use of atomic energy resulted from research on atomic bomb 1957 first commercial nuclear power plant in Shippingport, Pennsylvania From 1940s to early 1970s – fed government exposed as many at 1800 people to radiation in experiments that provided little to no medical benefit American citizens were used as nuclear calibration instruments

Advances in Medicine 1954 Dr. Jonas Salk and Dr. Thomas Francis conducted successful test of Polio vaccine (killed or disabled 20,000 U.S. children every year) 1944 advances in production of antibiotics – penicillin saved countless lives – 1950s discovered other antibiotics Lessons learned in war allowed doctors to operate to correct heart defects

Changes in the Work Force By 1956 a majority of all American workers held white- collar jobs – no longer produced goods but performed services at counters or in offices Workers were encouraged by working conditions but large corporations were impersonal Employers pressured employees to dress, think and act alike Blue Collar conditions also improved – guaranteed cost- of-living increases 1955 – 33% of total labor forces – AFL and CIO merged (American Federation of Labor – Congress of Industrial Organizations)

 Baby Boom of WWII continued  25 births per 1000 in peak year

Moving to the Suburbs WWII veterans enjoyed the Servicemens Readjustment Act of 1944 = GI Bill- gave low-interest mortgages to purchase new homes  Average Americans could afford to buy homes

Levitt Town’s Developers pioneered mass-production in home building Precut and preassembled materials built homes in weeks (William J. Levitt – Levitttown’s  Some complained developments all looked alike “Little Boxes” – through usually well- designed and well built

Cars and Highways Stores moved from cities to shopping centers in suburbs Americans more dependent on automobile than public transportation = new car designs every year

1956 Interstate Highway Act provided $26 billion to build an interstate highway system more than 40,000 miles long – allowed for evacuation of major cities in event of emergency Drive-in movies inspired by car culture http ://

The Growth of Consumer Credit Gasoline companies offered credit cards to loyal customers Americans willingly went into debt to purchase products they wanted

Diner’s club card 1950 – 1959 American Express Card = Bank Americard (VISA) U.S. had become “the affluent society” Frank X. McNamara. Courtesy of Diners Club.