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ECO 202Macroeconomics of the 1950’sCassandra GordonECO 202Ginny P
ECO 2021950-1960 U.S. Economic History Overview•1949-1953:Harry S. Truman was president•1950: Korean War begins, a historic turning point•In the 1950’s, the United States economy grew by 37%.•Unemployment was as low at 2.7%•1950’s: GI Bill was used •1951: Television was a big part of families and the first colored television series was The World Is Yours!•1952: Immigration and Nationality Act.•1953-1961: Dwight D. Eisenhower was president•1959: The average yearly income rose from 3,210 to 5,010•1957: Civil Rights Act
ECO 202GDP 1950-1959
ECO 202GDP 1950-1959Debt Consumer AmericaUsing credit card extensivelyPurchasing beyond means including; televisions, cars, houses, and appliancesGI BillVeterans educated employeesThe growth of SuburbiaTelevisionA T.V. in every homeAdvertising become a part of American culture
ECO 202Economic Events and the Unemployment Level•Building across American was in earnest especially steel and iron•The Dow thrived•1955: Rosa Parks
ECO 202Interest Rates
ECO 202Foreign Trade: Imports and ExportsExports 1950-1959Imports 1950-1959
ECO 202Foreign Trade: Models
ECO 202Fiscal Policy 1950-1960•Military spending for the Korean War•Class tax became a citizen tax•Slow growth of the GNP
ECO 202Fiscal Policy ActionsThe New Deal Expanded Social SecurityFederal Highway Act of 1956Gas taxesTax Policy
ECO 202Monetary PolicyThe Federal Reserve handles monetary policy and controls this by:•Stabilizing the price level•Maintaining high employment level•Promoting economic growth•Ensuring financial market stabilityThe Fed executes the above functions using two tools:•Controlling money supply •Controlling interest rate1951 Accord
ECO 202Monetary Policy Actions•The monetary policies of the 1950’s decreased poverty due to increased production and money supply.