1. The depression that was widely expected after World War II failed to materialize. Economists credited Keynesian fiscal policy with the maintenance of high employment. For the first time in the nation’s history, however, inflation became a chronic peacetime problem.
2. The role of the federal government in the economy continued to expand, especially during the first three decades of the postwar era. In 1950, federal spending amounted to 16 percent of GDP; by 1980, it amounted to 22 percent. However, a reaction to the growth of government set in. In 2007, federal spending was
20 percent of GDP.
3. The structure of the economy changed dramatically in the postwar era: manufacturing and agriculture declined relative to the service sector.
4. In the 1960s, a civil rights revolution shook the nation. Efforts were made through the government, and through direct action, to secure greater economic progress for women, African Americans, and other disadvantaged groups.
5. The pace of economic growth was the subject of only minor complaints in the first two decades after the war; but in the 1970s, concern mounted as productivity growth slowed and troubling signs of social deterioration emerged.
6. In the late 1970s and early 1980s, a reaction to government involvement in the economy set in. The airlines, the banks, and other sectors were deregulated, and marginal tax rates were cut. In 1996, an attempt was made to reform the welfare system.
7. In 2008 the United States suffered a financial crisis reminiscent of the start of the Great Depression and earlier crises.
World History
