Business & Social Changes in 1950s

1. Business & Social Changes in 1950s Ch. 19, Sec 1, 2

2. After WWII, economy grew rapidly. • During war, goods were rationed, people put money in savings. • After war, goods became available, people began to purchase. • Led to reorganization of business, new developments in technology, big economic growth.

3. Business changes • Huge economic growth. • Per capita income (average annual income per person) increased from $1,223 to $2,219 from 1949-1960. • Businesses reconverted to peacetime production. • Wartime technologies incorporated into civilian market; radar, computers. • Large companies reorganized to better protect against events like Great Depression. • Formed conglomerates-corporation made up of 3 or more unrelated businesses. • If one industry failed, business would make up losses on other industries.

6. New type of business created called franchise. • Business that contracts to offer certain goods/services from parent company. • Can use parent company’s name, suppliers, production methods, products. • Franchise owner splits profits with parent company, but has less risk, people already know brand. • Started by Ray Kroc when he purchased restaurant from McDonald brothers. • Turned one store in San Bernardino, CA into worldwide chain of McDonald’s by using creating franchise system. • Franchise system quickly adopted by other businesses.

10. Technological advancements • WWII technology advances spurred production, new products for consumers. • Ex-dishwashers, gasoline lawnmowers. • Television technology developed in 1930s, but war stopped work. • Late 1940s-early 1950s-tv went into production. • Became widely popular. • Early tv was live, later went to mostly taped shows. • Popular-Howdy Doody, The Mickey Mouse Club, American Bandstand, I Love Lucy, Father Knows Best, Lawrence Welk Show, etc.

18. 1950s brought computers. • Early computers used vacuum tubes to run computers. • 1947-invention of transistor-same as vacuum tube, but smaller, generated less heat. • Led to smaller computers. • First modern computer developed due to Grace Hopper-created software-programs to run computers. • Computers run off of punch cards-computers read cards, followed directions.

23. Atomic bomb project brought about nuclear power. • Fission-splitting atoms-generates heat energy. • Used to create steam to power turbines to generate electricity. • 1954-Nautilus-first nuclear-powered submarine, sails. • Led to creation of first nuclear power plant in Shippingport, Pennsylvania, in 1957. • Atomic power seen as power of the future. • Celebrated in movies, including Disney’s Our Friend the Atom.

28. Medicine saw advances also. • Polio killed or disabled 20,000 kids/year. • Dr. Jonas Salk developed vaccine for polio, virtually wiping out disease. • By 1950, penicillin, sulfa-based drugs, other antibiotics very effective in dealing with infection. • New surgical techniques improved survivability of injury & defects. • Heart surgery pioneered in 1950s.

31. Changes in workforce • More people, including GI’s, went to college. • US moved toward a white-collar workforce. • Worked in offices, sales, little manual labor. • Better pay (usually), pressure to conform to corporate mentality. • Blue-collar workforce saw advancements too. • Machinery often made work easier. • Better pay, working conditions compared to earlier.

34. Staring around 1945, US experienced baby boom. • Birth rate increased greatly from Depression & war years. • Families didn’t want to live in apartments in cities. • Moved to suburbs-sub-urban areas on edges of town. • 1944-GI Bill (Servicemen’s Adjustment Act) provided low-interest mortgages for houses, helped pay for college. • People wanted houses, but there was a housing shortage, not enough to go around.

39. William Levitt pioneered mass-production building techniques, could build houses in weeks instead of months. • Built entire towns called Levittowns. • Houses were cheap, almost everyone could afford. • Thousands of Americans bought their first homes. • Many felt houses looked all the same, very depressing.

42. With movement to suburbs, couldn’t rely on public transportation. • People began to buy and rely on cars more and more. • New models released every year; new cars became status symbols. • 1948 to 1958-car sales increased by 50% • 1956-Ike signed Interstate Highway Act. • $25 billion for 40,000 miles of highways. • Many travel easy across country, also important in Cold War for city evacuation.

43. Chevrolet Cadillac

44. Mercury Ford

46. New wave of credit in 1950s. • Credit Cards-operate on same credit principles. • First major credit card-Diner’s Club card. • American Express, Visa started in late 1950s. • Easy to get cards, let to more spending. • Credit debt in 1946-$8 billion. • Credit debt in 1960-$56 billion.

48. Conformity in 1950s • Americans originally valued individuality. • 1950s-Americans valued conformity. • Being like everyone else didn’t draw attention, brought a measure of security. • Youth of 1950s called the “Silent Generation”. • Their parents, the “Greatest Generation”, saved the world in WWII. • Silent Gen. didn’t seem interested in larger world. • Due to prosperity, kids in ‘50s expected to finish high school, maybe go to college. • Most only had to work part-time jobs, if at all.

50. Boys worked in soda-fountains, gas stations, grocery stores, girls baby-sat. • Advertising began to market to youth culture. • Teens, young adults developing big buying power. • Ads of girls in poodle skirts, boys in letter sweaters helped push conformity. • TV shows-Leave it to Beaver, Father Knows Best helped shape image of teens. • Magazines marketed to teens-Seventeen, Datebook, Teen, Cool gave advice on clothes, behavior, dating. • Youth culture marketing started in 1950’s, today youth & retired marketing make up largest portion of advertising.