The document discusses the sources and factors influencing the U.S. economic boom from 1945 to 1989, including the impact of World War II, public investment, and changes in demographics. It highlights key events such as the Korean War, Vietnam War, oil crises, and Reaganomics, which shaped economic conditions and policies during this period. The text also examines multinational expansion and the military-industrial complex as significant elements of economic development.

1. SOURCES OF THE US ECONOMIC BOOM

2. PAST QUESTIONS
• What were the achievements of the US economy 1945-68 and what factors
limited its growth 1968-89 (2017)
• What were the strength and weaknesses of the US economy 1945-89? (2016)
• What was the American Dream and how was it reflected in life in the US 1945-
89? (2015)
• What were the significant developments in the US economy 1945-89? (2014)
• What was the impact on the US economy of one or more of the following: the
Multinational Corporation, the Military Industrial Complex, international
competition from Japan and Europe? (2013)
• To what extent did the US economy experience success and decline during the
period 1945-89? (2012)
• Why did the US experience an economic boom 1945-68 and what was its impact
on society? (2010)

3. What is happening here?

4. WORLD WAR 2’S IMPACT ON THE ECONOMY
• Demand for labour – need more soldiers/workers
• Demand for new and better weapons encouraged
technological development
• Wartime technologies (e.g. Radar) could be used for
peacetime roles – creating more jobs and developing
economy
• Savings increased during the war – spent at end of war,
spurring economic growth
• No need to spend money repairing war damage (unlike
Europe)

5. PUBLIC INVESTMENT
How would public
investment lead to an
economic boom?
What was the biggest
area of government
spending?
What is Keynesian
economic
development?
Give one example of
investment in
education?

6. DEVELOPMENT OF CORPORATIONS

7. FOREIGN INVESTMENT – 1960 % 1973
0
20
40
60
80
100
120
140
160
180
1 2

8. CAUSES OF MULTINATIONAL EXPANSION
• Successful in _________ market – able to expand abroad
(McDonalds)
• Greater ____________ & ____________ skills
• Growth of World ________ (e.g. Europe) after WW2
• Investment in __________ and Development (R&D)
• Tax laws encouraged __________ __________(e.g.
Ireland)
• Federal _____________ for companies
• Dollar ($$$) became world’s biggest ____________

9. What was
Eisenhower’s fears
concerning the
Military Industrial
Complex?
What companies
could be involved in
this?

11. The Birth rate in the US increased dramatically
in the 50s and 60s. Why?
What do we call this event? (and people who
were born in this time)?

12. These two charts show
the Rural-Urban
population breakdown
between 1940 and
1990.
How would movement
to cities contribute to
an economic boom?

13. Housing before World War 2

15. ECONOMIC DECLINE IN THE US

17. What was his great
domestic programme
called?
What War did he
fight in Southeast
Asia?
What did he bring in
in 1964?
How did he pay for it?
What did It cause?

18. BY 1973
• Pent Up demand for housing after world war two had
been satisfied
• Economic drag of paying for Vietnam War
• Growing budget deficit of 1960s paid by borrowing
(leading to more debt & inflation, less money available to
federal government to spend)
• Balance of Payments (Imports vs Exports) had worsened

19. 1973 – THE OIL CRISIS
• In an effort to punish the US and other countries for
supporting Israel, Arab Oil Producing Countries (OPEC)
raised the price of oil dramatically
• This led to shortages and increased fuel costs – which had
knock on impacts on other parts of the economy

21. Do you recognise anyone in this
cartoon?
How would you reference this in
an essay?

22. 1979 – THE IRANIAN REVOLUTION

23. 1979 IRANIAN REVOLUTION
• This saw the creation of an Islamic Republic in Iran
• US was blamed for supporting the unpopular leader of
Iran (the Shah) – this led to a hostage crisis as the US
Embassy in Tehran was occupied by Iranians
• President Carter was seen as weak and indecisive in his
response to the crisis
• Created a second “oil shock” which impacted directly on
the US economy

24. REAGANOMICS
• Reagan believed in cutting taxes (to spur individual
spending) and reducing government spending in areas
such as education and welfare.
• This led to economic growth and a reduction in
unemployment
• Spending on defence increased which led to a deficit
• Gramm-Rudman act -

25. FOREIGN COMPETITION

26. What were the main
achievements of the US
economy 1945-68 and
what factors limited its
growth 1968-89?