Use evidence from the text, “The Postwar Economy” to explain how capitalism formed the United States into the country it is today. Living standards lagged among some groups. Many rural whites faced poverty in themidst of abundance. Some minorities, especially African Americans and MexicanAmericans, did not share equally in the general affluence. Although AfricanAmericans in 1950 were earning significantly more than they had in 1940, there wasstill a wide gap between the average annual income of whites and blacks, a gap thatwidened over the course of the 1950s. Despite these inequities, the overall averagestandard of living rose dramatically in the postwar United States.New Benefits for LaborThough organized labor suffered a setback with the restrictions imposed by the Taft-Hartley Act in 1947, labor's growing strength in numbers helped even the playingfield. In the 1940s, major industrial employers agreed to grant their workers suchbenefits as paid vacations, health insurance, and retirement pensions. In 1948,Walter Reuther, head of the United Auto Workers, negotiated an agreement withGeneral Motors, in which GM agreed to provide annual cost-of-living adjustments(COLAS) to help wages keep pace with inflation.These changes transformed the lives of millions of American families. Unionizedblue-collar workers now found themselves comfortably secure and relativelyprosperous. It became increasingly difficult Lo distinguish between the working classand the middle class. According to Fortune magazine, by 1954 the typical middle-class consumer was no longer "a small-town landlord or drugstore proprietor. If anystereotype at all is meaningful, it might be the machinist in Detroit."

Question

Use evidence from the text, “The Postwar Economy” to explain how capitalism formed the United States into the country it is today. Living standards lagged among some groups. Many rural whites faced poverty in themidst of abundance. Some minorities, especially African Americans and MexicanAmericans, did not share equally in the general affluence. Although AfricanAmericans in 1950 were earning significantly more than they had in 1940, there wasstill a wide gap between the average annual income of whites and blacks, a gap thatwidened over the course of the 1950s. Despite these inequities, the overall averagestandard of living rose dramatically in the postwar United States.New Benefits for LaborThough organized labor suffered a setback with the restrictions imposed by the Taft-Hartley Act in 1947, labor's growing strength in numbers helped even the playingfield. In the 1940s, major industrial employers agreed to grant their workers suchbenefits as paid vacations, health insurance, and retirement pensions. In 1948,Walter Reuther, head of the United Auto Workers, negotiated an agreement withGeneral Motors, in which GM agreed to provide annual cost-of-living adjustments(COLAS) to help wages keep pace with inflation.These changes transformed the lives of millions of American families. Unionizedblue-collar workers now found themselves comfortably secure and relativelyprosperous. It became increasingly difficult Lo distinguish between the working classand the middle class. According to Fortune magazine, by 1954 the typical middle-class consumer was no longer &#34;a small-town landlord or drugstore proprietor. If anystereotype at all is meaningful, it might be the machinist in Detroit.&#34;

Accepted Answer

Post the Second World, the United States made an unprecedented level of economic developement. It…