What helped drive the tremendous growth of the U.S economy after World War II?
1 Answer
A new cycle of growth emerged after WWII, it followed a cycle of depression that had followed another cycle of growth during the Twenties, this new cycle was mostly fuelled by the emergence of consumer society.
Explanation:
The economy has worked in cycles since the Industrial Revolution. It has been thus due to the emergence of innovation that fuelled the economy and eventually became outdated.
Following WWII, Europe with its need of reconstuction became a huge opportunity for American markets, the Marshall Plan made it financially submitted. The emergence of the consumer society and of the American way of life.
The combination of both mass consumption and full employment created this extraordinary almost thirty-year long economic phase. In this era most people would become part of what we now call the middle class. People would buy consumer goods such as fridges, cars, television. Houses would be equipped with Bathrooms.
The turn of the Seventies saw the end of this growth cycle for several reasons. The 1973 oil shock was the triggering cause but deeper causes are to be considered. Some industries were facing a drop in their demand because people were equipped massively in the goods they produced. The traditional Fordist mode of production on an assembly was now outdated by Toyotism and contested by organized labor. The economy was being slowed by the overwhelming inflation whereas uemployment was soaring as the baby-boomers were going into the job market massively.
