Lesson Essential Questions
How is the wartime economy different then peacetime?
The wartime economy is very different than a peacetime economy because of the flow of money and resources. In a war economy, one country might not trade or purchase goods from another country because of war which can result in a shortage of a certain good or service. In a peacetime economy a country can trade with whomever they choose because everyone is civil. Also in a war economy one might be putting off resources just for the war to ensure a victory. For example, a country can mass produce weapons and vehicles that will give them the best chances in a war while in a peacetime economy one would be producing whatever goods one would want. When there is a war most of the money goes towards paying for this war therefore a country will have to spend millions, billions, or even trillions of dollars on the war where in a peacetime economy that funding can go towards federal programs to better the economy or citizens.
Why are the 1950’s remembered as an Age of Affluence?
The word ‘Affluence’ means the state of having a great deal of money; wealth. Many people were considered affluent at this time because the economy was booming with success. People had more money than they had before. Prices for products were cost-effective and mortgages for homes was low. This lead to the high demand for consumerism and later to the suburbs. With the wide wealth in the American people, felt as though now was a prime time to start raising families hence the reason this time period is also known as the ‘baby boomers’.
The wartime economy is very different than a peacetime economy because of the flow of money and resources. In a war economy, one country might not trade or purchase goods from another country because of war which can result in a shortage of a certain good or service. In a peacetime economy a country can trade with whomever they choose because everyone is civil. Also in a war economy one might be putting off resources just for the war to ensure a victory. For example, a country can mass produce weapons and vehicles that will give them the best chances in a war while in a peacetime economy one would be producing whatever goods one would want. When there is a war most of the money goes towards paying for this war therefore a country will have to spend millions, billions, or even trillions of dollars on the war where in a peacetime economy that funding can go towards federal programs to better the economy or citizens.
Why are the 1950’s remembered as an Age of Affluence?
The word ‘Affluence’ means the state of having a great deal of money; wealth. Many people were considered affluent at this time because the economy was booming with success. People had more money than they had before. Prices for products were cost-effective and mortgages for homes was low. This lead to the high demand for consumerism and later to the suburbs. With the wide wealth in the American people, felt as though now was a prime time to start raising families hence the reason this time period is also known as the ‘baby boomers’.
Vocabulary
- Command Economy: an economy in which production, investment, prices, and incomes are determined centrally by a government.
- Market Economy: An economy in which decisions regarding investment, production, and distribution are based on market determined supply and demand, and prices of goods and services are determined in a free price system.
- Government Spending: Includes all government consumption, investment, and transfer payments
- GDP:Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity.
- Affluence:The state of having a great deal of money; wealth.
- Post War Boom:Was a period of economic prosperity in the mid-20th century which occurred, following the end of World War ll.
- Baby Boom:A temporary marked increase in the birth rate, especially the one following World War II.
- Consumerism:The protection or promotion of the interests of consumers.
- Levittown:An unincorporated community of southeast New York on western Long Island. It was the first of several low-cost, suburban housing developments built by Levitt and Sons following World War II.
- Suburbs:An outlying district of a city, especially a residential one.