1947-1957 Economy

By ksbuza

  • Taft-Hartley Act

    Following immediately after WWII, labor protests began to spring up, throughout numerous industries, with 5 million American workers partaking in the largest labor strikes in American history. Due to this, Congress enacted the Taft-Hartley Act, restricting the power of labor unions, setting up for the '50s economy.

  • 1948-1949 Recession

    This was a short recession that was predicted to be much worse than it was, with many believing it to take the turn towards previous economic hardships. (Great Depression still fresh in people's minds) Many believe the cause was due to the end of WWII.

  • Credit Cards

    The Diner's Club company is founded, who introduced the very first credit, and the American populace begins to buy things on credit, which while put many in debt, also spurred the economy. With more people making bigger purchases, the economy flourished.

  • Korean War

    With the beginning of the Korean War, the U.S. government begins introducing production controls and regulations in the economy, and material shortages become a problem.

  • Mild Recession

    A mild recession, due to the Korean War and its effects begins, as the government enacted government policy that was meant to help in a hypothetical post-Korean war inflation. This caused interest rates to lower, and aggregate consumer demand to drop.

  • End of Recession, Beginning of Boom

    The country begins to pull out of its mild recession, and keeps GNP at a growth rate from the previous year at 7.6%.

  • Economic Boom

    The economy is doing so well, that the government budget is predicted to be at a surplus of $4.6 billion. This decade doubled its GNP, and increased the standard of living for most Americans increased dramatically due to the surplus in funds.

  • Sharp Economic Downturn

    Industrial production falls to 14%, with corporate profits down by 25%. The unemployment rate rises to 7.5%. Even so, president Eisenhower did nothing to alleviate this. The 50's was a time where Congress was fixated on worrying about inflation rates, and not unemployment rates.

  • Highway Act of 1956

    With the introduction of a highway system by Truman, money from workers, and the eventual people who use this interstate, generates a lot of money, and stimulates the economy.