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Great Depression Recovery
The US economy was in a state of recovery from the Great Depression in 1936. The inflation rate in 1936 was 1.46%, lower than the year before, which was 2.24% in 1935. Families were hit hard by the Great Depression. Couples delayed marriages, the birth rate dropped to an all-time low due to families not being able to afford basic needs, and divorce rates were also dropped because people couldn’t afford to live separately. -
WW2 Starts
While the US
The economy was slowly recovering, Europe was being ravaged by the 2nd World War, and it wouldn’t be long until the US joined in. When WW2 began in 1939, the unemployment rate was 17.2%. The family dynamic drastically changed, husbands, brothers, fathers, and friends were now lining up at the recruitment facilities to fight for their country and women lined up at the factories to fill in the gaps that were left from the war. -
Economy Still Struggling Due to The Great Depression
Shortage of raw materials for households and all most manufacturers dedicated themselves to helping out with the rations for the war. -
1940 Information
In 1940 the unemployment rate was 14.6% but the GDP only grew by 8.8%. -
War Shortages
According to The 1940s Business News in around the time of the 1940s, there were war shortages. It states, "many items, including meat, sugar, butter, and canned goods, were rationed. Every U.S. citizen was given a book of stamps. These stamps had to be handed over by the customer when he or she bought rationed goods. Many suppliers made extra money by illegally selling rationed goods to customers who did not have enough stamps, charging them extra. Even gasoline was rationed. -
1941 Information
In 1941 the unemployment rate dropped to 9.9% and the GDP grew by almost double at 17.7% -
Pearl Harbor Attack
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1942 Information
The unemployment rate dropped to 4.2% and the GDP grew by 18.9% -
Bretton Woods Agreement
According to the 1940s Business News in, 1944 diplomats and business leaders wanted to create free markets around the world. It states, "In 1944, with the end of the war in sight, the Bretton Woods Agreement was signed. It set up two institutions, the International Monetary Fund and the World Bank, and established the General Agreement on Tariffs and Trade, a multilateral agreement that set rules for trade between countries. The IMF lent money to governments to help them rebuild after the war." -
WW2 Ends
the US experienced what is called today as a “Post-War Boom” or the“Golden Age of Capitalism”. Increasing consumer demands, soldiers returning from the war, and the beginning of the Cold War all contributed to this boom. -
Government Owes Money Due to War
The government owes an estimate of 43 billion dollars due to the extraordinary amount they spent during WW2 helping out the Us troops. -
America Helps Rebuild Europe
The Us Secretary of State proposed a plan to help rebuild European Nations to fix that damage that has been done during WW2. Europe received a total of about 17 billion US dollars over the course of four years to help with the problem. America wanted Europe to buy more American goods. The article says" ... to avoid another economic crisis. It also laid the foundations for the European Common Market and the single currency called the Euro, which is now used in several western European countries." -
Baby Boom
Starting in the 1950s the US experienced what was called a “Post War Economic Boom”. Money suddenly started pouring into families. People now had enough money to have a family with
kids, and this is what people did. This caused a population boom in the 50s and 60s, or what people referred to as the “Baby Boom” generation. -
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