The Aftermath of World War II

Start Free Trial

Discussion Topic

The primary reasons for the post-World War II economic boom in the United States

Summary:

The primary reasons for the post-World War II economic boom in the United States include increased consumer demand, government spending on infrastructure and defense, and technological advancements. The war effort had stimulated industrial production, and returning soldiers fueled demand for housing, goods, and services. Additionally, the G.I. Bill provided education and home loans, further boosting economic growth.

Expert Answers

An illustration of the letter 'A' in a speech bubbles

What was the primary reason for the post-World War II economic boom in the United States?

The economic boom following World War II was the result of pent-up demand.  During the war, most production was directed to the war, weapons and ammunition, uniforms for soldiers, vehicles to move troops. For example, no vehicles for private consumption were produced during the entire war.  This meant that after the war was over, production of consumer products could resume, and people were more than ready to buy cars, appliances, and clothing.  At the same time, soldiers returning from war were getting married, settling down, and having children.  This meant there was a need for new housing. There was a dreadful housing shortage during the war, and I know that my own parents were thrilled to find a studio apartment to start their marriage.  Various programs for benefits helped returning soldiers to purchase their homes, and educational benefits allowed them to go to college.  This generation, having fought a war and done without for so long, was ready to consume!

References

Approved by eNotes Editorial
An illustration of the letter 'A' in a speech bubbles

Why did the US economy grow post-World War II?

I would say that the 1950s brought with it unprecedented economic progress because the war generated enough production as the wheels of industry moved after a long silence.  The Great Depression had caused industry to shut down and be invisible.  Yet, the need for war production and consumption helped to restart this process, causing a high level of material prosperity in America following the war.  At the same time, the United States was the unquestioned world economic leader.  Europe had been decimated by World War II, and the new nations that emerged from colonization were fledgling, at best.  Japan was crippled following the dropping of the atomic bombs, and China was not a world power.  The Soviet Union was seen as a militaristic adversary to the United States, but one that could not rival its wealth and material prosperity.  In the end, this world status also contributed to the expansion of the economy because there were new markets to be conquered internationally.  The market for exports was unprecedented as every nation sought to "buy American," for its own nation could not produce what was needed.  These factors led to the United States' economy expanding so quickly in the period after the Second World War.

Get Ahead with eNotes

Start your 48-hour free trial to access everything you need to rise to the top of the class. Enjoy expert answers and study guides ad-free and take your learning to the next level.

Get 48 Hours Free Access
Approved by eNotes Editorial