A housing boom, stimulated in part by easily affordable mortgages for returning servicemen, fueled the expansion. The rise in defense spending as the Cold War escalated also played a part. After 1945 the major corporations in America grew even larger.

What happened to the economy after World War 2?

The private economy boomed as the government sector stopped buying munitions and hiring soldiers. Factories that had once made bombs now made toasters, and toaster sales were rising. On paper, measured GDP did drop after the war: It was 13 percent lower in 1947 than in 1944.

What happens when developers built affordable mass produced houses in places such as Levittown?

What happened when developers built affordable, mass-produced houses in places such as Levittown? The suburbs grew as young families moved away from cities. The percentage of families owning cars increased dramatically.

Which is true of the early development of computers in the 1950s?

They increased the speed of personal communication much as the telegraph did in the nineteenth century. They were mainly used by the government and the military. They provided improved accuracy in consumer billing and payments.

What two factors contributed to the growth of suburbs?

The growth of suburbs resulted from several historical forces, including the social legacy of the Depression, mass demobilization after the War (and the consequent “baby boom”), greater government involvement in housing and development, the mass marketing of the automobile, and a dramatic change in demographics.

Why was the economy so good after ww2?

Driven by growing consumer demand, as well as the continuing expansion of the military-industrial complex as the Cold War ramped up, the United States reached new heights of prosperity in the years after World War II.

What happened when developers built affordable?

What happened when developers built affordable, mass-produced houses in places such as Levittown? The suburbs grew as young families moved away from cities.

What was an economic consequence of the growth of the suburbs in the 1950s?

A growth in affordable automobiles and highways contributed to the growth of suburbs by allowing wealthier white families to still keep their jobs in the inner city, but not have to live there. They could now live in nicer, safer areas outside of the city and commute to work.

How did credit affect the economy in the postwar era?

Credit initially slowed spending because people were required to complete applications. Credit gave people a false sense of security that eventually slowed the economy. Credit helped fuel the spending that caused the economy to grow. What was not a result of the car culture that developed in the postwar era?

How did the availability of easy credit affect the economy?

Along with lowering the prices the inventors would raise their own payment so that they could keep up with the competition (1920-30’s.com). For some time it seem to work and amazingly they were able to make a profit and boosted the economy through that time.

Why was credit so easy in the 1920’s?

The reason for this was because during the 1920’s America was the “wealthiest country in the world with no obvious rival” (HistoryLearningSite.co.uk). At this point new inventions were being created to make what were once very tedious jobs that probably took hours to do were now able to be done much quick and easier.

Why is bad credit bad for the economy?

Credit May Encourage Reckless or Undesirable Behavior. Distorted prices and bad credit decisions by both lenders and borrowers can’t be blamed on government policy alone. Many people simply can’t handle debt responsibly – they borrow too much, spend recklessly, miss payments, lose the house and go broke.