Economic Status of The United States in 1950 Essay

Emerging victorious from public state of struggle II five years earlier, the joined landed estates in 1950 was reaping the benefits of a increment sparing benefits that were actu all toldy derived out of the countrys club in the fight. The destruction and mayhem brought by the global conflict too brought with it some(prenominal) verifying contributions to the economy. Some would all the same argue that the countrys participation in World state of war II actually saved it from the gravid Depression. To understand the sparing boom of the 1950s it is necessary to appreciate the positive impacts that were borne out of World War II.The foundation for the economic expansion and increment experient in 1950 and several years subsequently that were laid during World War II. To fund and support the countrys state of contend epoch efforts, it had to recruit millions of the Statesn soldiers to be sent to the war front as healthful as to be stationed at home. Factories had to be built to maintain war materiel guns and ammunitions, military transport, tanks, fighter planes and bombers, etc. To man the factories women and of age(p) peck had to be recruited as most of the able-bodied men were at war.WWII created jobs and gave life to many another(prenominal) a(prenominal) industries and energized a nation. Among the industries that prospered during and immediately after the war were the newsprint patience, the agriculture industry and even Hollywood. Industries that produced transport and plant machineries also prospered. passim the War, women, for the first clock, were given the opportunity to work outside their homes and participate in nation building. The participation of the women in the outwear aim started to increase during this time.The War also provided opportunities that would later be manifested in the 1950s. Take for example many of Americas products went overseas introducing themselves to new markets. more had actually feared t hat the marchesinal of the War would lead the country lynchpin to depression. With production of military supplies flood tide to an end, this fear had its basis for the entire economy was propped up by all that had to do with the global conflict. Fortunately, this was not the case. The victory relished by the nation brought virtually confidence in the organization and the economy.The common consumer best exhibited this confidence as the strong consumer demand spurred economic ingathering after the War. Leading towards the 1950s, industries that experienced a surge in growth include the automobile industry and the admit industry, and new industries experienced fantastic births industries such as melodic line and electronics. There was also an other(a) outcome of WWII that contributed to post War growth the Cold War amidst U. S. and the U. S. S. R. Many of the military industries that sprouted during the war continued to do big business after it.As communistic block emer ged as a military power in Europe, America had to arm itself against what it considered as a threat. Huge investments were made in the defense reaction of the country. Such investments meant jobs, factories, Brobdingnagian spending all contributed to the boom of the 1950s. The economic victory of the country probably influenced its leaders to advocate the replication of an open economy at the international level. This is best evidenced by the countrys spearheading the establishment of the International Monetary Fund and the World Bank.Gross house servant Product and Per Capita GDPIn 1950, the countrys GDP was at $293. 8 Billion (in current dollars). At that time, Per Capita GDP was $9,573. 00 making the United States the number one country world wide in this aspect. By 1996, GDP was at $13. 194 Trillion. Per Capita GDP was at $43,800. 00 however, the country ranked nevertheless at 10th place world wide in this respect. contain World War II scenario showed that too few econom ies survive the war time a big majority, especially in Europe, was greatly affected. Many informations starting in the late 1970s toward the early 2000s enabled other countries to fade the U.S. in terms of Per Capita GDP.As Per Capita GDP is influenced by population, countries that had significant economic growth coupled with low birth rate were able to conquer the U. S. in this indicator. However, the U. S. remains the most powerful economy in 2007 victorious into consideration other indicators. Employment and Unemployment In 1950, the civilian force metier was about 58 million strong. Only 5. 3 percent of the lying-in force was unemployed. 41. 6 million of the labor force at that time were males, while only 17. 34 million were females.By 1996, the labor force grew to about 142 million while unemployment rate as at 5 percent. 76 million were males while 66 million were females in the labor force. In the 1950s, the number of workers in the services sector caught up with wo rkers in goods production industries. The same time also saw the rise of clerical jobs and the strengthening of labor unions. Awareness on labor rights was on a rise. The biggest impact experienced by the labor force was the increase in womens participation in employment activities. Accordingly, women have literally poured nto the labor force starting in 1950. By 1990, womens participation in the labor force would nearly double. On the other hand, mens participation would sack over time.Per Capita Personal Income In 1950 the Per Capita Personal Income was pegged at $1,501. 00. By 2006 this rose to about $36,600. 00. Though marked by huge difference in amount, it can be noted that $1,501. 00 in 1950 could by more goods and services than the $36,600 in 2006 as illustrated by the consumer price index judge for both years. Consumer Price Index and Inflation With 1967 as base year, CPI in 1950 was registered at 72. meaning that a basket of goods and services bought in 1950 were 72. 1 percent of the price of the same goods and services bought in 1967.By 2006, the CPI was at 603. 5. This meant that the same basket of goods and services bought in 1967 would hail 603. 5 percent more in 2006. Inflation rate in 1950 was at a steady 1. 09 percent. In 2006 the rate was at 3. 24 percent. Emerging Industries 1950 saw the payoff of new industries that were anchored on new technologies. Among these is the aerospace industry. The great success of the heavy bombers during the war emphasized importance on innovation.Improvements in engine design, metallurgy, and arms technology helped advance the industry as well as improve manufacturing procedures. The onset of the Cold War ensured that the industry was thither to stay. At its peak, the industry hired hundreds of thousands of workers in four major factories. The industry was also fueled by a $3 billion government spending. Other industries that grew during this time were boosted by other industries. Take for instance the housing boom experienced after war. New homes meant additional furniture and appliances as well as new cars.The consumer-led growth likewise spread to other areas. The introduction of television to the masses spurred the growth in electronics. There were also after effects in the growth of industries. As the demand for homes and cars increased, many Americans were lured out of central cities to the suburbs. The construction of better highways also contributed to these phenomena. Farmers though were veneering tough times. As people left farm lands, lesser people were left behind to do farm work. This led to a drop in the productivity of the farm sector.Innovations and the Transformation of BusinessAt a personal level, 1950 saw the introduction of the first hand held T. V. remote encounter a device that would be seen as a indispensableness in many households for years to come. Color TV also emerged thru the issuance of a license to CBS Network. Another innovation is the introducti on of the first credit bill sticker Diners also an item that would come across as a necessity in modern times. The first pagers were also developed in 1950. In the business front, 1950 would usher in an era marked by desegregation of large companies. Businesses would combine to create bigger, greater businesses.Example, International Telephone and wire bought Sheraton Hotels, Continental Banking, Hartford Fire Insurance, Avis Rent-a-Car, and other companies. Notable Events and Personalities Notable events of 1950 included the following Start of the Korean War influenced greatly by the U. S. and USSR at opposite sides, North and South Korea would tangle in a three-year war that highlighted the tension during Cold War regime. Development of the Hydrogen Bomb raged by the atomic bomb testing by USSR, the government pursued the development of a hydrogen bomb.Senator Joseph McArthy started the Red Scare in halls of the U. S. Senate making accusations that the State Department wa s filled with Communists or their sympathizers. The Senators actions led to the adoption of the term McCarthyism describing intense anti-Communists sentiments. This period coincided with and fueled the onset of the Cold War between America and the USSR. Thousands of Americans were accused of being Communists or sympathizers during this time Americans in non-homogeneous sectors of the society. History would later judge these accusations as reckless and baseless.While Senator McArthy gained goodish media mileage at the start of his campaigns, he would be later unmasked as a grandstanding antic who had little or no evidence to back up his accusations. Many of the people Senator McArthy accussed suffered greatly. Many loss their jobs, had their careers ruined while some were even unjustly imprisoned. Conclusion The end of World War II led to the end of the Great Depression and the start of a long period of economic expansion through the 1950s. It is quite ironical that the most dest ructive war in history would contribute to the emergence of the strongest and biggest economy in the world.The confidence on the economy was obviously brought about by the countrys victory in the War. Tempered by strong collaboration between the government, businesses and the consumers, the U. S. emerged from the War a lot stronger and economically strengthened. Industrial expansion during wartime brought economic impetus that would be carried on even after WWII. The fact that most of the major economies were slow to recover from the after effects of the conflict placed the United States at absolute and relative advantage over both its allies and its enemies.