How Does The US Economy Impact The Aggressive Growth Plan

The economy began to recover in 1983 and was surging in 1984. Unemployment and interest rates dropped, allowing more Americans to buy homes and cars (Moss & Thomas, 2013, p. 236). Inflation dropped to four percent, the lowest since the early 1970s. Americans were earning more money, and oil prices were dropping, making fuel more affordable (Moss & Thomas, 2013, p. 236). “Economic growth generated 18 million new jobs and tripled the price of stocks by 1990” (Moss & Thomas, 2013, p. 236).

During the 1920’s, America was a prosperous nation going through the “Big Boom” and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the

During the 1920s, the U.S. economy was flourishing, with this period being called the Roaring Twenties (“Great Depression”). People were spending money, stocks were high, and people were richer than ever, with the exception of farmers (“Great Depression”). After World War I, there was less of a demand for crops, but other than that, most people were rich (“Great Depression”). People were so confident, they thought this would never end. They were so confident, that Herbert Hoover, who would then become the next president, proclaimed “in 1928 that the United States was close to ‘the final triumph over poverty’ ” (“Great Depression”). We were getting closer to a country of money and happiness by the minute. Truly, this was a time of prosperity.

At the end of World War II the United States economy improved greatly because more and more people were considered middle class and the United States affirmed itself as the richest country in the world. Companies were growing larger and demand increased as more and more people came to the U.S. During the first decade after the war people taxes increased to 88% and stayed at that level until 1963 when the taxes payed off the war debt. With the collapse of the Bretton woods system the golden age after World War 2 came to an end in 1971. The president dropped the taxes to 70% which gave people more money than they had before and increased their spending and their overall way of life became more expensive to maintain. And around this time Reagan was president and his economic policies caused America’s middle class to stagnate and he also increased the debt of the

During the Great Depression and World War II many Americans delayed marrying and having children because of the poor economy. The number of marriages and births soared after the war. Many older couples who had delayed having children began having them when the war ended. This increase in births among both younger and older American couples created the Baby Boom Generation. This large group of people born in the U.S. from 1946 to 1964 amounted to 76 million children. Those born during this time make up approximately 36% of today’s population (Deutsch). What impact has this had on the economy? Read on to see how the baby boom generation has affected the economy and what will happen as they retire.

Following World War II, the United States experienced a high birth rate, adding on average 4.24 million new babies to the population every year between 1946 and 1964. The generation of baby boomers resulted a strong post war economy. Americans thought confident that they would be able to support a larger number of children. The baby boom influenced the economy as a core demographic for products tied to their age from toys. After nine months after World War II ended, “the cry of the baby was heard across land.”

Baby Boomers have been one of the most powerful forces in shaping the economic environment and are the wealthiest generation in the United States (Kotler and Armstrong, 2015). “In their early years, “Leading Edge” Boomers enjoyed economic prosperity, and their resulting financial power in their prime years drove rising trends in everything. However, the recessionary years of the early 1970’s also added cautionary realities to their youthful consumption and employment dreams” (“America’s Oldest Boomers”, n.d.). Baby boomers control approximately 70% of the disposable income in the United States, therefore, they are known as being one of the most influential financial forces in the marketplace (“Baby Boomers Report”, 2015). As they reach their

During the 1950’s there was a period of postwar economic growth. After World War II, America secured its title as the world's richest country. The Gross Domestic Product of the America was $2.184 trillion dollars in 1950 and grew to $3.109 trillion dollars in 1960. Many Americans believe the 1950’s was the first decade of the “golden age of capitalism. The American middle class was built in the 1950’s. During the economic expansion the United States was beginning to go through tension with the USSR known as the Cold War. The Cold War spurred economic growth in the 1950’s because it called for strategic government intervening in the economy.

The American economy in the decade from 1970-1979 was a mess. It was so bad that it was named “The Great Inflation of the 1970s”. The Vietnam War was still ongoing and the American people were worried. The main areas of concern for the American people during the 1970s were high unemployment, rising inflation, the energy crisis and an economic recession.

After WWII many economists predicted a recession in the American economy. It is easy to do so when at the peak of post war unemployment in March 1946 2.7 million searched for work. In 1945 people were laid off from their jobs. However, “ in 1945 the US entered one of its longest, steadiest, periods of growth and prosperity” (Norton 829). How could this be? With many new developments affecting the United State’s social and economic behavior, the wealth of the nation burgeoned. It is the extreme wealth of this society which supports and creates consumerism, the “Americans’ [increased] appetite for goods

Due to rising incomes and a rapid increase in consumer spending, items that were previously deemed luxuries for the wealthy were now necessities and common in middle class households. Surges in production and the economy during the 1950s essentially eliminated poverty for the majority of Americans, dropping to 4.1%; Gross National Product per capita nearly doubled over the decade. The U.S. population also swelled. Roughly 3 million people annually were added during the postwar period known as the ‘Baby Boom’

The United States once had the largest economy in the entire world, and when there are problems with the US economy shock waves can be felt all over the world. The global economy is inter-connected on several levels due to the amount of international trade which occurs.

With the end of World War II in 1945, came a time for the American people to be optimistic about their future. This new found confidence created a boom in the economy. Men who had served were back home and reunited with their families causing a baby boom and a rise in the growth of the population. Technology boomed as well and contributed to the economic expansion of the United States. Life was good and the “American Dream” had become a reality with prosperity so abundant.

Following the end of World War II, the American economy found its way out of depression. Wartime production aided the economy and spiked the country’s spending power. From the late 1940s, people have been accustomed to spending the money they have on everything they want and need. People then started to figure out and believe that this type of spending, consumerism, improved the economy. The items that were being bought were also different than they were before. “At war's end, the items people most desired included televisions, cars, washing machines, refrigerators, toasters, and vacuum cleaners: the machines that would help

At that time though tax rates were 70% higher; presently the United States has the lowest tax rate of the leading economies (Sachs). The economy at that time was an effective mix of big business and activism in government, this combination worked to reduce the gap between rich and poor (Sachs). Then the 1970’s hit and things began to fall apart in the face of new challenges. It was in the 1970’s that globalization first hit with the introduction of Japanese cars to compete with the three major car dealers in America, inflation began to rise (Sachs). Rather than examining ways to become more competitive in the face of globalization, government looked inward and decided that is was the problem and not the solution to a problem (Sachs). The government failed to recognize the key role it played in correcting the economy before.