Economy after 1945

Joseph Brown
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Study Guide Overview
This AP US History study guide covers Post-War America (1945-1960s), focusing on the Post-War Boom, the G.I. Bill, the Baby Boom, Suburban Growth, the rise of the Sunbelt States, the Taft-Hartley Act, Truman’s Fair Deal, Eisenhower's Presidency (including Modern Republicanism and the Interstate Highway System), and Kennedy’s New Frontier. It examines the social, economic, and political transformations of this era, including key legislation, demographic shifts, and their lasting impacts. The guide also includes practice questions and exam tips.
AP US History: Post-War America Study Guide
Hey there! Let's get you prepped for the APUSH exam with a focused review of the post-WWII era. This guide is designed to be your go-to resource, making sure you're not just memorizing facts but understanding the big picture. Let's do this!
The Post-War Boom (1945-1960)
The U.S. economy experienced massive growth after World War II, marked by low unemployment, low inflation, and steady economic expansion. This period saw a shift from an industrial to a service-based economy, fueled by new technologies and industries. This era is crucial for understanding the social and economic shifts of the mid-20th century.
Key Factors:
- Economic Expansion: Decades of growth with low unemployment and inflation.
- Shift in Economy: Move from industrial to service-based jobs.
- Technological Advances: New industries and innovations.
The G.I. Bill
The G.I. Bill (Servicemen's Readjustment Act of 1944) was a game-changer, providing education and housing benefits to veterans.
This bill significantly impacted the post-war economy and society.
Key Impacts:
- Education: Over two million veterans attended college.
- Housing: $16 billion in low-interest loans for homes and businesses.
- Economic Boost: Helped veterans transition to civilian life.
The Baby Boom
An explosion of marriages and births led to the Baby Boom, with about 4 million births per year.
The Baby Boom generation significantly shaped American culture and economy.
The Baby Boom generation significantly shaped American culture and economy.
Image Courtesy of Alyson Hurt; 2010 Census
Causes:
- Returning Soldiers: Reunions led to increased birth rates.
- Economic Prosperity: Families felt secure enough to have children.
- New Technologies: Appliances like washing machines and refrigerators made childcare easier.
Impacts:
- Consumer Spending: Drove economic growth.
- Workforce: Became the backbone of the workforce in later decades.
- Cultural Shift: Shaped social norms and values.
Suburban Growth
The construction boom and the desire for new homes led to rapid suburban growth.
Suburbanization dramatically altered the American landscape and social structure.
Key Factors:
- Housing Demand: High demand after the war and baby boom.
- Government-Backed Mortgages: FHA and VA loans made homeownership accessible.
- Federal Highway System: Enabled commuting and suburban expansion.
Levittown:
- Mass-Produced Homes: William J. Levitt's project on Long Island offered affordable homes.
- Standard Features: Included kitchen, bedrooms, bath, and living room with a fireplace.
- Affordability: Original house sold for $6,990 in 1948.
Image Courtesy of Wikipedia
Effects:
- Shift to Suburbs: Majority of Americans became suburbanites in a single generation.
- Urban Decline: Inner cities faced increased poverty and racial division.
Image Courtesy of Daily Mail Article
Sunbelt States
The Sunbelt states (Florida to California) attracted many due to warmer climates, lower taxes, and economic opportunities.
The Sunbelt's growth was fueled by military spending and economic opportunity.
Key Factors:
- Climate: Warmer weather was a major draw.
- Lower Taxes: Attracted businesses and residents.
- Defense Industries: Military spending during the Cold War created jobs.
- Political Shift: Led to a transfer of political power from the Northeast and Midwest.
Taft-Hartley Act
The Taft-Hartley Act (1947) aimed to curb the power of labor unions.
This act significantly altered labor relations and continues to be debated.
Provisions:
- Outlawed Closed Shops: No more contracts requiring union membership before hiring.
- Right-to-Work Laws: Allowed states to ban union shops (requiring union membership after hiring).
- Restricted Union Activities: Outlawed secondary boycotts and featherbedding.
- Presidential Power: Allowed the president to invoke an 80-day cooling-off period for strikes.
Truman’s Fair Deal
Truman’s Fair Deal was a set of proposals to expand New Deal policies, focusing on economic inequality and social justice. Understanding the Fair Deal helps to see the continuation of New Deal ideas.
Image Courtesy of Political Dictionary
Proposals:
- Social Security Expansion: Increased coverage and benefits.
- National Health Insurance: Proposed a federal healthcare program.
- Low-Cost Housing: Federal program to provide affordable housing.
- Minimum Wage Increase: Raised the federal minimum wage.
- Civil Rights: A program to end discrimination in housing, education, and employment.
- Job Training: Federal programs to help the unemployed.
- Rural Improvement: Programs to improve rural life and farm incomes.
Challenges:
- Congressional Opposition: Republicans controlled Congress and opposed most of the bills.
- Political Conflicts: Truman's struggles with Congress limited success.
- Cold War Focus: Foreign policy concerns took precedence.
Legacy:
- Inspiration for Future Programs: Influenced later programs like the Great Society.
- Partial Success: Some proposals were later passed by Truman's successors.
Eisenhower’s Presidency
Modern Republicanism
Eisenhower's Modern Republicanism was fiscally conservative but accepted and extended some New Deal programs.
Remember Eisenhower's focus on fiscal conservatism and moderate approach.
- Fiscal Conservatism: Focused on balancing the budget.
- Acceptance of New Deal: Extended Social Security, raised minimum wage, and built public housing.
- Department of Health, Education, and Welfare: Created in 1953 to consolidate welfare programs.
- Limited Federal Intervention: Opposed federal health care and aid to education.
Interstate Highway System
The Highway Act of 1956 authorized the construction of 42,000 miles of interstate highways.
The Highway Act had long-lasting impacts on transportation, economy, and culture.
- National Defense: Justified by the need for improved national defense.
- Economic Impact: Created jobs, promoted the trucking industry, and accelerated suburban growth.
- Cultural Impact: Contributed to a more homogenous national culture.
Kennedy’s New Frontier
Kennedy's New Frontier called for aid to education, federal support of health care, and civil rights.
Kennedy's New Frontier mirrored the goals of FDR and Truman but faced similar challenges.
Key Proposals:
- Aid to Education: Increased federal funding for schools.
- Federal Health Care: Proposed a national health insurance program.
- Civil Rights: Pushed for legislation to end discrimination.
Challenges:
- Lack of Success: Kennedy faced similar obstacles as FDR and Truman in achieving these goals.
Final Exam Focus
Alright, let's nail this exam! Here's what to focus on:
- High-Value Topics:
- Post-War Boom: Understand the economic and social changes.
- G.I. Bill: Its impact on education and housing.
- Baby Boom: Its effects on demographics and the economy.
- Suburbanization: The causes and consequences.
- Taft-Hartley Act: Its impact on labor unions.
- Fair Deal: Its goals and limitations.
- Eisenhower's Modern Republicanism and the Interstate Highway System.
- Common Question Types:
- Multiple Choice: Expect questions on the causes and effects of the Baby Boom, suburbanization, and the impact of legislation like the G.I. Bill and Taft-Hartley Act.
- Short Answer Questions: Be prepared to analyze the impact of the post-war economic boom and the social changes of the era.
- Free Response Questions: Focus on how the government policies and social trends of the post-war era shaped American society and politics.
- Last-Minute Tips:
- Time Management: Quickly identify the main point of each question.
- Common Pitfalls: Avoid oversimplifying complex issues; make sure to connect the specific events to larger trends.
- Strategies: Use your knowledge of key terms and concepts to support your answers.
Practice Questions
Practice Question
Multiple Choice Questions
-
Which of the following was a significant cause of the post-World War II suburban growth? (A) Increased immigration from Europe (B) The desire for larger homes and yards (C) The decline of the automobile industry (D) The expansion of public transportation
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The Taft-Hartley Act of 1947 was primarily aimed at: (A) Promoting the growth of labor unions (B) Expanding social welfare programs (C) Limiting the power of labor unions (D) Supporting civil rights legislation
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The G.I. Bill had a significant impact on post-World War II America by: (A) Decreasing the number of college graduates (B) Providing educational and housing benefits to veterans (C) Limiting the growth of the suburbs (D) Reducing the number of people entering the workforce
Short Answer Questions
- Briefly explain TWO social or economic effects of the Baby Boom in the United States.
Free Response Question
Analyze the social and economic changes that occurred in the United States during the post-World War II era (1945-1960). In your response, be sure to address the following:
- The impact of the G.I. Bill.
- The causes and effects of the Baby Boom.
- The rise of suburbanization.
- The influence of the Sunbelt states.
Scoring Rubric:
- Thesis (1 point): A clear, historically defensible thesis that addresses the prompt.
- G.I. Bill (1 point): Explanation of the G.I. Bill's impact on education and housing.
- Baby Boom (2 points): Discussion of the causes and effects of the Baby Boom on demographics and the economy.
- Suburbanization (2 points): Analysis of the factors contributing to suburban growth and its social consequences.
- Sunbelt States (1 point): Explanation of the factors contributing to the rise of the Sunbelt states.
- Synthesis (1 point): Connection of the post-war changes to broader themes or developments in US history.
You've got this! Remember, understanding the big picture and making connections between events is key. Go crush that exam! 🚀

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Question 1 of 13
🎉 What was a key characteristic of the U.S. economy during the post-World War II boom?
High unemployment rates
High inflation
Low unemployment
Economic recession