The Economic "Miracle".

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Chapter 30 The Affluent Society

Salil Shah

Period 3

I. The Economic “Miracle”

A. Economic Growth

Between 1945 and 1960 economic boom occurred nearly uninterrupted, GNP went increased 250% from 200 bill to 500. Unemployment and inflation remained low. Gov smpending which started during depression continued, public housing, schools, vets etc. Economic growth was at peak during early 50 during Korean war, military spending also peaked. Birth rate went up… baby boom peaked during war in 1957. Increase 20% 150 to 179 million, caused economic expansion. Suburbs also expanded helped expand some sectors of economy. Privately owned cars doubled, new homes, housing industry. Economy grew 10x faster than population, but not evenly distributed. Americans had increased purchasing power and highest standard of living than any other civilization in world.

B. The Rise of the Modern West

West saw greatest changes as result of economic growth. Population, cities flourished, no longer appendage of east. By 60’s parts of west were important cultural, industrial centers. West saw most of government spending, dams, powerstations… military contracts to California and Texas. Automobiles caused increase in oil fields which made cities in Texas grow. States gov invested in state universities for research, made them among the best in the nation. Dry warm climate attracted people. Los Angeles had increase in new businesses, population increase 50 % from 1940 – 1960.

C. Capital and Labor

Labor unions increased so much that they were no longer intimidated by large corporations, leader made important concession to them, $80 week salary. AFL and Coingress of Industrial Organization merged under leadership of George Meany. Many Unions would gain so much power that they became corrupt, i.e. Teamster Union under David Beck, would be charged by gov. United Mine workers also had charges of corruption.

II The Explosion of Science and Technology

A. Medical Breakthroughs

20th century so more medical breakthroughs than any other, especially in antibacterial drugs. Antibiotics stemmed from Louis Pasteur and Jules Joubert in 1870’s France, thenJ Joseph Lister who proved antiseptic solutions prevent infection in surgery. Then sulfa drugs in the 1930’s used in France, Britain, and Germany against blood diseases. In 1928 Alexander Flemming accidentally found antibacterial props of penicillin. Oxford refined the potency of it but availability would not reach all of England till after WWII, mass production would start around 1948 around world. Vaccines against viruses also increased. Tenetanus vaccines… Tuberculosis. Progress on viruses were slow except small pox. 1954 Jonas Salk introduced vaccine against polio, gov offered to public for free. By 60’s vaccines had been virtually eliminated. Death rate in kid decline and average life expectancy increased to 71 years.

B. Pesticides

In 1939 Swiss chemist, Paul Muller discovered DDT, harmless to humans, toxic to insects. Americans learn about this in 1942 as soldiers were coming down with insect borne diseases like malaria and typhus. DDT became widely used first in Italy, people thought it was miracle chemical. Later on pacific islands where US was fighting Japs. Cases of malaria decline sharpley, it wasn’t for a while that they realized it was toxic to humans and animals.

C. Post war electronic Research

Researchers in the 40’s developed first commercially sound televison. RCA developed first color TV which became available in early 60’s. IN 1948 Bell labs developed the transistor which would replace the vacuum tubes which were in most electronic devices. TV’s, radios, avaiation equipment were all smaller. Also developed integrate circuitry which made it possible to combine diodes, resistors, transistors into microscopic device. Led to development of computer.

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D. Postwar Computer Technology

First computer were meant for complex mathmatics like those used to break military codes. Then began use in commercial business area. The UNIVAC was able to handle numbers and letters and had tape storage, could do functions faster than predecessor. To gain publicity for computer outside census market, makers of UNIVAC predicted results of 1952 election for CBS. That night was first time that many Americans became aware of computers. Remington Rand could not market the UNIVAC but new company, IBM marketed successfully computer to US business and abroad. Invested heavily on research and development.

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