How The Government spending effected the postwar boom
The Government greatly effected the postwar boom and the result it had on millions of people. The government decided to spend more money to raise production of goods and services. The main new technology made was the automobile, this was first made by Henry Ford. Assembly lines started to produce it and this lead to mass production of cars and more money stimulating the economy. Roads increased economic growth, the growth of suburbs, and the government thought we should spend spend spend! Eisenhower's support for government spending also stimulated the economic growth during the 50's.
Due to the government spending increase, GDP (Gross Domestic Product) increased the value of goods/services. The Free Price System lead to more exchange of supply and demand which lead to a skyrocket of production and distribution. Supply and Demand is when peoples wants/demands lead supply/production, the government spending increases this and stimulates the economy. |
The government realized spend increases was stimulating the economy so they started spending to increase health, law, education, schooling and it opened new job opportunities. The government spent money to make highways and this stimulated the automobile stock and money moving around. The government played a huge role in the stimulation of money and many believed the government should have stood around and let the economy work its self out of the recession. When this theory was proved wrong with the continued decline of economy and staggering rise of unemployment, the government started to spend money to stimulate the economy.
The Postwar boom was massive due to the government spending but instead of causing another great depression, money was kept track of better with banks. The banks would be checked and some money would be stored in the bank for each individual. The banks that were not properly ran would be shut down and this increased not only individual safety, but government safety also! |
Advertisements, shipments of supplies and roads all were made because of government spending. Without the spending we would have had The Great Depression for much longer and we wouldn't have mass produced cars or technologies until later on and we may not be as advanced as we are today! If we did not have good technologies we could lack protection and we would have lost a lot more wars. With the plans the government made to up the money spread and protect United States citizens, it really did change America and its defense.
The government would make the harsh decisions and would have to deal with the harsh ridicule of the public
If the Public didn't like the decision that was made they would:
|