THE USA ECONOMY AFTER WORLD WAR II
World War II wasa period when economic stability was realized in America. As waswitnessed in other parts of the world, the aftermath of the war waseconomic hardship and depression. For the United States, livingstandards and rise in opportunities in the job market was the case. Notably, government chipped in in every sector of the economyincluding partnering with the private sector (Sparrow, 2014). Itbecame the biggest consumer of goods produced by the private sector.Also, huge resource allocation to warfare was significantly reduced,leading to redirection to other uses. After the War, tax rate reducedalthough it was still high I respect to the temporary standard. By1960, the gross national product increased to at least $500,000 from$300,000 back in 1940 (U.S Department of State).
What propelled the economy was the Marshall plan. This was the periodwhen the Iron Curtain fell on European countries and America was incold war with the Soviet Union. The production of essential goods wasaffected which necessitated the exportation of goods from the USAindustries.
According to the U.S Department of States, the governmentintervention ensured the consolidation of companies making them hugeand diversified. For example, Hartford Fire Insurance, SheratonHotels, International Telephone, and Continental Banking wereamalgamated. New industries like those of electronic and aviationsprung as consumer demand increased.
Another important milestone in the economic upsurge was thetransformation in the Workforce. The number of people in serviceprovision rose up to a level equal then passed the workers who werein the production industry. The majority of them were in thewhite-collar than blue-collar jobs. They had labor unions thatmitigated in the rights resulting to permanent employment rather thancontracts. The flipside of it was the positive gains in productivityled to the overproduction of agricultural products making farming alucrative business. As a result, only large scale farmers survivedwhile their small-scale counterparts found it impossible to compete(Sparrow, 2014).
Sparrow, B. H. (2014). From the outside in: World War II and theAmerican state. Princeton University Press.
U.S Department of State, The Post War Economy: 1945-1960,retrieved fromhttp://economics.about.com/od/useconomichistory/a/post_war.htmon 29 Sept, 2016.