preview

World War I And The United States

Better Essays
In 1945 the British Prime Minister Winston Churchill said that the United States would be the strongest economic country in the world. In the 1950’s it had become a reality and the United States not only had a strong military but a strong economy. World War II was a staple for why the economy was up with the war going on money was needed to get the war products like planes, tanks, bullets, guns, and many other things. Also with the war going on it meant that more jobs were needed and it benefited the economy in the 50’s. When the economy was going well in the 50’s things like foods, cars, and houses were readily available and affordable more than ever .Everyone during this period was expected to have at least a house and a car. During…show more content…
The causes of the inflation are not fully understood. Slow economic growth and slow increases in the money supply are considered the most probable suspects. At this time the money supply rose much more slowly than the Gross National Product.

The economy around the time of the 1950 's was a boring period of time. The economy didn’t experience any major problems.The growth of the U.S. during this time led the economy to its peak in the 60 's. One of the major issues during this time was high inflation. Also two major waves of inflation had swept the country at this time. The first was after WW2, and the second was at the beginning of the Korean War in 1950. During this time there was a slow growth of productivity in the U.S. economy, especially in the service sector. The service sector experienced the biggest price increases due to lapses following the removal of price controls following WW2. The Federal Reserve Bank set policies that was used to regulate and maintain the economy and from prevention of diving into large economic declines. The Federal Reserve Board played an important role on the inflation of the 1950 's. Huge increases in the indirect business taxes and social security taxes also played a key role as they nearly doubled throughout the decade. Also a mild recession reached its peak in January 1954 with unemployment rates topping out a little
Get Access