Economy

During the 1950s the American economy was the strongest in the world. During this time period people had money that they could spend on clothing and fashion.

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The economy did not experience any major problems or breakthroughs. Inflation was important during the 1950s because of two major things the end of World War II and the onset of the Korean War in 1950. The causes of this inflation are not fully understood. Slow economic growth and slow increases in the money supply are considered the most probable culprits. Consumer prices increased significantly over this decade. The economy turned sharply downward in the summer of 1957 and reached its low point in spring 1958. The president did little to stimulate the economy because he worried about inflation –not unemployment- as the real danger. Subsequently, fiscal year 1959 realized a $12 billion deficit, a new record for a budget shortfall during peacetime.

For more Information:

http://homepages.gac.edu/~jcullip/workexamples/mea.html

http://www.bookrags.com/history/america-1950s-business-and-the-economy/

http://www.teachertube.com/viewVideo.php?video_id=163321