Post-World War II economic expansion
Encyclopedia
- "Golden Age of capitalism" redirects here. Other periods this term may refer to are Gilded AgeGilded AgeIn United States history, the Gilded Age refers to the era of rapid economic and population growth in the United States during the post–Civil War and post-Reconstruction eras of the late 19th century. The term "Gilded Age" was coined by Mark Twain and Charles Dudley Warner in their book The Gilded...
and Belle ÉpoqueBelle ÉpoqueThe Belle Époque or La Belle Époque was a period in European social history that began during the late 19th century and lasted until World War I. Occurring during the era of the French Third Republic and the German Empire, it was a period characterised by optimism and new technological and medical...
.
The post–World War II economic expansion, also known as the postwar economic boom, the long boom, and the Golden Age of Capitalism, was a period of economic prosperity in the mid 20th century, which occurred mainly in western countries, followed the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
in 1945, and lasted until the early 1970s, ending with the collapse of the Bretton Woods system
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
in 1971, the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
, and the 1973–1974 stock market crash, which led to the 1970s recession. Narrowly defined, the period spanned from 1945 to 1952, with overall growth lasting well until 1971, though there are some debates on dating the period, and booms in individual countries differed, some starting as early as 1945, and overlapping the rise of the East Asian economies into the 1980s or 1990s.
During this time there was high worldwide economic growth; Western European and East Asian countries in particular experienced unusually high and sustained growth, together with full employment
Full employment
In macroeconomics, full employment is a condition of the national economy, where all or nearly all persons willing and able to work at the prevailing wages and working conditions are able to do so....
. Contrary to early predictions, this high growth also included many countries that had been devastated by the war, such as West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
(Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
), France (Trente Glorieuses
Trente Glorieuses
Les Trente Glorieuses refers to the thirty years from 1945-1975 following the end of the Second World War in France. The name was first used by the French demographer Jean Fourastié...
), Japan (Japanese post-war economic miracle
Japanese post-war economic miracle
The Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred mainly by Japanese economic policy, in particular through the Ministry of International Trade and Industry...
) and Italy (Italian economic miracle
Italian economic miracle
The Italian economic miracle is the name often used by historians, economists and mass media to designate the prolonged period of sustained economic growth in Italy comprised between the end of World War II and the late 1960s, and in particular the years 1950-63...
).
Terminology
In academic literature, the period is frequently and narrowly referred to as the post–World War II economic boom, though this term can refer to much shorter booms in particular markets. It is also known as the Long Boom, though this term is generic and can refer to other periods. The golden age of Capitalism is a common name for this period in both academic and popular economics books. However in older sources and occasionally in contemporary ones, Golden age of Capitalism can refer to the period from approximately 1870 to 1914 , which also saw rapid economic expansion. Yet another name for the quarter century following the end of World War II is the Age of Keynes.Dating the period
Political Economist Roger Middleton states that economic historians generally agree on 1950 as the start date for the golden age–while Lord Skidelsky states 1951 is the most recognized start date.Both Skidelsky and Middleton have 1973 as the generally recognized end date, though sometimes the golden age is considered to have ended as early as 1970.
- the collapse of the Bretton Woods systemBretton Woods systemThe Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
in 1971 - the growing influx of imported manufacturing goods, such as automobiles and electronics
- the 1973 oil crisis,
- the 1973–1974 stock market crash,
- the ensuing 1970s recession, and
- the ensuing displacement of Keynesian economicsKeynesian economicsKeynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
by monetarist economicsMonetarismMonetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...
.
While this is the global period, specific countries experienced booms for different periods; in Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
, the Taiwan Miracle
Taiwan Miracle
The Taiwan Miracle or Taiwan Economic Miracle refers to the rapid industrialization and economic growth of Taiwan during the latter half of the twentieth century...
lasted into the late 1990s, for instance, while in French the period is referred to as Trente Glorieuses (30 glorious [years]) and is considered to extend for the 30-year period from 1945 to 1975.
Global economic climate
Skidelsky devotes ten pages of his 2009 book Keynes: The Return of the Master
Keynes: The Return of the Master
Keynes: The Return of the Master is a 2009 book by economic historian Robert Skidelsky. The work discusses the economic theories and philosophy of John Maynard Keynes, and argues about their relevance to the world following the Financial crisis of 2007–2010...
to a comparison of golden age to what he calls the Washington Consensus
Washington Consensus
The term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...
period, which he dates as spanning 1980–2009 (1973–1980 being a transitional period):
| Metric | Golden Age | Washington Consensus |
|---|---|---|
| Average global growth | 4.8% | 3.2% |
| Average global inflation | 3.9% | 3.2% |
| Unemployment (US) | 4.8% | 6.1% |
| Unemployment (France) | 1.2% | 9.5% |
| Unemployment (Germany) | 3.1% | 7.5% |
Skidelsky suggests the high global growth during the golden age was especially impressive as during that period Japan was the only major Asian economy enjoying high growth (Taiwan and Korea at the time being small economies)–it was not until later that the world had the exceptional growth of China raising the global average. Skidelsky also reports that inequality was generally decreasing during the golden age, whereas since the
Washington Consensus was formed it has been increasing.
Globally, the golden age was a time of unusual financial stability, with crises far less frequent and intense than before or after. Martin Wolf
Martin Wolf
Martin Wolf, CBE is a British journalist, widely considered to be one of the world's most influential writers on economics. He is associate editor and chief economics commentator at the Financial Times.-Early life:...
reports that between 1945–71 (27 years) the world saw only 38 financial crises, whereas from 1973–97 (24 years) there were 139.
Keynesian economics
Monetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...
.
An article capturing the very positive economic outlook in the US titled "We Are All Keynesians Now" was published in 1965 by Time Magazine
Journalist Naomi Klein
Naomi Klein
Naomi Klein is a Canadian author and social activist known for her political analyses and criticism of corporate globalization.-Family:...
has argued the high growth enjoyed by Europe and America was delivered by Keynesian economic policies
Keynesian economics
Keynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
, and in the case of rapidly rising prosperity the golden age saw in parts of South America by the influence of developmentalist economics led by Raúl Prebisch
Raúl Prebisch
Raúl Prebisch was an Argentine economist known for his contribution to structuralist economics, in particular the Singer–Prebisch thesis that formed the basis of economic dependency theory. He is sometimes considered to be a neo-Marxist though this label is misleading...
.
Immediate post-war policy
Among the causes can be mentioned the rapid normalization of political relations between former Axis powers and the western Allies.
After the war, the major powers were determined not to repeat the mistakes of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, some of which were ascribed to post–World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
policy errors. The Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
for the rebuilding of Europe is most credited for reconciliation, though the immediate post-war situation was more complicated.
The post–World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
period was shaped by the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...
, whose Article 231 of the Treaty of Versailles
Article 231 of the Treaty of Versailles
Article 231, commonly known as the "Guilt Clause" or the "War Guilt Clause", is the first article in Part VIII, "Reparations" of the Treaty of Versailles. Apart from "Article 231", there is no title for this article in the treaty itself...
(the "war guilt clause") attributed guilt to the losing Germans and instituted World War I reparations
World War I reparations
World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...
, which delayed the normalization of relations. There was also occupation of Germany's industrial Saar region
Saar (protectorate)
The Saar Protectorate was a German borderland territory twice temporarily made a protectorate state. Since rejoining Germany the second time in 1957, it is the smallest Federal German Area State , the Saarland, not counting the city-states Berlin, Hamburg and Bremen...
by France and Britain, and protectionism in the Great Depression era.
Following World War II, the victorious Allies first followed a policy of deindustrializing and extracting resources from Germany under the Industrial plans for Germany
Industrial plans for Germany
The Industrial plans for Germany were designs the Allies considered imposing on Germany in the aftermath of World War II to reduce and manage Germany's industrial capacity.-Background:...
–the Morgenthau Plan
Morgenthau Plan
The Morgenthau Plan, proposed by United States Secretary of the Treasury Henry Morgenthau, Jr., advocated that the Allied occupation of Germany following World War II include measures to eliminate Germany's ability to wage war.-Overview:...
in America and the Monnet Plan
Monnet Plan
The Monnet plan was proposed by French civil servant Jean Monnet after the end of World War II. It was a reconstruction plan for France that proposed giving France control over the German coal and steel areas of the Ruhr area and Saar and using these resources to bring France to 150% of pre-war...
in France–which involved dismantling German factories and removing them to victor nations, largely France and Russia–and destroying what could not be dismantled–together with the forced labor of millions of former German prisoners of war, the occupation of the Saar region
Saar (protectorate)
The Saar Protectorate was a German borderland territory twice temporarily made a protectorate state. Since rejoining Germany the second time in 1957, it is the smallest Federal German Area State , the Saarland, not counting the city-states Berlin, Hamburg and Bremen...
by France (as had been done in the post–World War I period), extensive logging by Americans, and transfer of German technology, patents, and scientists to victor nations, the latter under Operation Paperclip
Operation Paperclip
Operation Paperclip was the Office of Strategic Services program used to recruit the scientists of Nazi Germany for employment by the United States in the aftermath of World War II...
. The Morgenthau Plan was then abandoned, being replaced by the Marshall Plan, which called for the rebuilding of Europe, including Germany. Some elements of the Morgenthau Plan continued under the Marshall Plan, and eventually ended officially in 1955. The occupation of the Saar was resolved by returning it to Germany in 1957, and the establishment of the European Coal and Steel Community
European Coal and Steel Community
The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...
to avoid further conflicts. The Coal and Steel Community formed the foundation of what was to become the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
in later years.
The effect of the extractive de-industrialization of Germany was in the short-term beneficial to victors and detrimental to Germany, but following the rollback of the Morgenthau Plan, Germany's post-war economic recovery (the Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
) shortly began.
Institutional factors
Institutional economists point to the international institutions established in the post-war period. Structurally, the victorious Allies established the Bretton Woods systemBretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
, setting up international institutions designed to ensure stability in the world economy
World economy
The world economy, or global economy, generally refers to the economy, which is based on economies of all of the world's countries, national economies. Also global economy can be seen as the economy of global society and national economies – as economies of local societies, making the global one....
. This was achieved through a number of factors, including promoting free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
, instituting the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
, and the use of Keynesian economics
Keynesian economics
Keynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
.
U.S. Council of Economic Advisers
In the United States, Congress set the goal of achieving full employment, full production, and stable prices in the Employment Act of 1946. It also created the Council of Economic AdvisersCouncil of Economic Advisers
The Council of Economic Advisers is an agency within the Executive Office of the President that advises the President of the United States on economic policy...
by the to provide objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic policy issues. In its first 7 years the CEA made five technical advances in policy making:.
- the replacement of a "cyclical model" of the economy by a "growth model,"
- the setting of quantitative targets for the economy,
- use of the theories of fiscal drag and full-employment budget,
- recognition of the need for greater flexibility in taxation, and
- replacement of the notion of unemployment as a structural problem by a realization of a low aggregate demand.
In 1949 a dispute broke out between chairman Edwin Nourse and member Leon Keyserling
Leon Keyserling
Leon Hirsch Keyserling was an American economist and lawyer. During his career he helped draft major pieces of New Deal legislation and advised President Harry S. Truman as head of the Council of Economic Advisers....
. Nourse believed a choice had to be made between "guns or butter" but Keyserling argued that an expanding economy permitted large defense expenditures without sacrificing an increased standard of living. In 1949 Keyserling gained support from powerful Truman advisers Dean Acheson
Dean Acheson
Dean Gooderham Acheson was an American statesman and lawyer. As United States Secretary of State in the administration of President Harry S. Truman from 1949 to 1953, he played a central role in defining American foreign policy during the Cold War...
and Clark Clifford
Clark Clifford
Clark McAdams Clifford was an American lawyer who served United States Presidents Harry S. Truman, John F. Kennedy, Lyndon B. Johnson and Jimmy Carter, serving as United States Secretary of Defense for Johnson....
. Nourse resigned as chairman, warning about the dangers of budget deficits and increased funding of "wasteful" defense costs. Keyserling succeeded to the chairmanship and influenced Truman's Fair Deal
Fair Deal
The Fair Deal was the term given to an ambitious set of proposals put forward by United States President Harry S. Truman to the United States Congress in his January 1949 State of the Union address. The term, however, has also been used to describe the domestic reform agenda of the Truman...
proposals and the economic sections of National Security Council Resolution 68 that, in April 1950, asserted that the larger armed forces America needed would not affect living standards or risk the "transformation of the free character of our economy."
During the 1953–54 recession, the CEA, headed by Arthur Burns deployed traditional Republican rhetoric. However it supported an activist contracyclical approach that helped to establish Keynesianism as a bipartisan economic policy for the nation. Especially important in formulating the CEA response to the recession—accelerating public works programs, easing credit, and reducing taxes—were Arthur F. Burns
Arthur F. Burns
Arthur Frank Burns was an American economist. He served as Chairman of the Federal Reserve from 1970 to 1978.- Career :...
and Neil H. Jacoby
Neil H. Jacoby
Neil Herman Jacoby was a university professor and public servant and was widely recognized as an expert on matters of taxation, finance, economic policy, and business-government relationships.-Early life:...
.
Military spending
Another explanation for this period is the theory of the permanent war economyPermanent war economy
The concept of permanent war economy originated in 1944 with an article by Ed Sard , Walter S. Oakes and T.N. Vance, a Third Camp Socialist, who predicted a post-war arms race...
which suggests that the large spending on the military helped stabilise the global economy; this has also been referred to as "Military Keynesianism
Military Keynesianism
Military Keynesianism is the accusation that John Maynard Keynes advocated government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. In fact, the English economist John Maynard Keynes advocated that government...
".
Specific countries
Economy of Japan
The economy of Japan, a free market economy, is the third largest in the world after the United States and the People's Republic of China, and ahead of Germany at 4th...
, Germany
Economy of Germany
Germany is the largest national economy in Europe, the fourth-largest by nominal GDP in the world, and fifth by GDP in 2008. Since the age of industrialisation, the country has been a driver, innovator, and beneficiary of an ever more globalised economy...
, France
Economy of France
France is the world's fifth largest economy by nominal figures and the ninth largest economy by PPP figures. It is the second largest economy in Europe in nominal figures and third largest economy in Europe in PPP figures...
, and Italy
Economy of Italy
Italy has a diversified industrial economy with high gross domestic product per capita and developed infrastructure. According to the International Monetary Fund, the World Bank and the CIA World Factbook, in 2010 Italy was the seventh-largest economy in the world and the third-largest in Europe...
did particularly well, each of these countries caught up to and exceeded the GDP of the United Kingdom
Economy of the United Kingdom
The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity , and the third-largest in Europe measured by nominal GDP and second-largest measured by PPP...
during these years, even as the UK itself was experiencing the greatest absolute prosperity in its history (the UK Conservatives'
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
re-election slogan in 1959 was "You've never had it so good"). In France, this period is often looked back to with nostalgia as the Trente Glorieuses
Trente Glorieuses
Les Trente Glorieuses refers to the thirty years from 1945-1975 following the end of the Second World War in France. The name was first used by the French demographer Jean Fourastié...
, or "Glorious Thirty", while the economies of Germany and Austria were characterized by Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
(economic miracle), and in Italy it is called Miracolo economico (economic miracle).
Most developing countries also did well in this period, especially compared to the 1980s and 1990s, which were plagued by debt and financial crises, with the notable exceptions of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
and the Four Asian Tigers (possibly excluding South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, which was hit very hard by the East Asian financial crisis
East Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion....
of 1997.
United Kingdom
A 1957 speech by British Prime Minister Harold Macmillan captures what the golden age felt like, even before the brightest years which were to come in the 1960s.Employment figures sourced from a standard economics textbook show that unemployment was significantly lower during the Golden Age than before or after:
| Epoch | Date range | Percentage of British Labour force unemployed. |
|---|---|---|
| Pre Golden Age | 1921–1938 | 13.4 |
| Golden Age | 1950–1969 | 1.6 |
| Post Golden Age | 1970–1993 | 6.7 |
In addition to superior economic performance, other social indexes were higher in the golden age; for example the proportion of Britain's population saying they are "very happy" has fallen from 52% in 1957 to just 36% in 2005.
Effects
Baby boomer
A baby boomer is a person who was born during the demographic Post-World War II baby boom and who grew up during the period between 1946 and 1964. The term "baby boomer" is sometimes used in a cultural context. Therefore, it is impossible to achieve broad consensus of a precise definition, even...
s). Movements and phenomena associated with this period include the height of the Cold War, postmodernism
Postmodernism
Postmodernism is a philosophical movement evolved in reaction to modernism, the tendency in contemporary culture to accept only objective truth and to be inherently suspicious towards a global cultural narrative or meta-narrative. Postmodernist thought is an intentional departure from the...
, decolonization
Decolonization
Decolonization refers to the undoing of colonialism, the unequal relation of polities whereby one people or nation establishes and maintains dependent Territory over another...
, a marked increase in consumerism
Consumerism
Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorstein Veblen...
, the welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
, the space race
Space Race
The Space Race was a mid-to-late 20th century competition between the Soviet Union and the United States for supremacy in space exploration. Between 1957 and 1975, Cold War rivalry between the two nations focused on attaining firsts in space exploration, which were seen as necessary for national...
, the Non-Aligned Movement
Non-Aligned Movement
The Non-Aligned Movement is a group of states considering themselves not aligned formally with or against any major power bloc. As of 2011, the movement had 120 members and 17 observer countries...
, import substitution
Import substitution
Import substitution industrialization or "Import-substituting Industrialization" is a trade and economic policy that advocates replacing imports with domestic production. It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of...
, opposition to the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
, the civil rights movement, the sexual revolution
Sexual revolution
The sexual revolution was a social movement that challenged traditional codes of behavior related to sexuality and interpersonal relationships throughout the Western world from the 1960s into the 1980s...
and the beginning of second-wave feminism
Second-wave feminism
The Feminist Movement, or the Women's Liberation Movement in the United States refers to a period of feminist activity which began during the early 1960s and lasted through the early 1990s....
, and a nuclear arms race
Arms race
The term arms race, in its original usage, describes a competition between two or more parties for the best armed forces. Each party competes to produce larger numbers of weapons, greater armies, or superior military technology in a technological escalation...
. In the United States, the middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....
began a mass migration away from the cities and towards the suburbs. Thus, it can be summed up (at least for the middle class) as a period of stability and prosperity in which most people could get a job for life, a spouse, child, house, dog and picket fence
Picket fence
A picket fence is a variety of fence that has been used mostly for domestic boundaries. Until the introduction of advertising on fences in the 1980s, a Cricket field was also usually surrounded by a picket fence, giving rise to the expression rattling the pickets for a ball hit firmly into the...
– see American Dream
American Dream
The American Dream is a national ethos of the United States in which freedom includes a promise of the possibility of prosperity and success. In the definition of the American Dream by James Truslow Adams in 1931, "life should be better and richer and fuller for everyone, with opportunity for each...
.
In the West
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...
, there emerged a near complete consensus against strong ideology
Ideology
An ideology is a set of ideas that constitutes one's goals, expectations, and actions. An ideology can be thought of as a comprehensive vision, as a way of looking at things , as in common sense and several philosophical tendencies , or a set of ideas proposed by the dominant class of a society to...
and a belief that technocratic and scientific solutions could be found to most of humanity's problems, a view advanced by U.S. President John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....
in 1962. This optimism was symbolized through such events as the 1964 New York World's Fair
1964 New York World's Fair
The 1964/1965 New York World's Fair was the third major world's fair to be held in New York City. Hailing itself as a "universal and international" exposition, the fair's theme was "Peace Through Understanding," dedicated to "Man's Achievement on a Shrinking Globe in an Expanding Universe";...
, and Lyndon Johnson's Great Society
Great Society
The Great Society was a set of domestic programs in the United States promoted by President Lyndon B. Johnson and fellow Democrats in Congress in the 1960s. Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice...
programs, which aimed at eliminating poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
in the United States.
Decline
The optimism waned however in the 1970s as high oil prices (due to the 1973 oil crisis1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
) hastened the transition to the post-industrial
Post-industrial society
If a nation becomes "post-industrial" it passes through, or dodges, a phase of society predominated by a manufacturing-based economy and moves on to a structure of society based on the provision of information, innovation, finance, and services.-Characteristics:...
economy, and a multitude of social problems began to emerge. During the 1970s steel crisis
Steel crisis
The steel crisis was a recession in the global steel market during the 1970s recession, following the end of the post-World War II economic boom and the 1973 oil crisis....
, demand for steel declined, and the Western world faced competition from newly industrial countries. This was especially harsh for mining and steel districts such as the North American Rust Belt
Rust Belt
The Rust Belt is a term that gained currency in the 1980s as the informal description of an area straddling the Midwestern and Northeastern United States, in which local economies traditionally garnered an increased manufacturing sector to add jobs and corporate profits...
and the West German Ruhr area
Ruhr Area
The Ruhr, by German-speaking geographers and historians more accurately called Ruhr district or Ruhr region , is an urban area in North Rhine-Westphalia, Germany. With 4435 km² and a population of some 5.2 million , it is the largest urban agglomeration in Germany...
.
Post-war context
- Aftermath of World War IIAftermath of World War IIAfter World War II a new era of tensions emerged based on opposing ideologies, mutual distrust between nations, and a nuclear arms race. This emerged into an environment dominated by a international balance of power that had changed significantly from the status quo before the war...
- Bretton Woods systemBretton Woods systemThe Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
, monetary system of this period - European Coal and Steel communityEuropean Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...
- Counterculture of the 1960sCounterculture of the 1960sThe counterculture of the 1960s refers to a cultural movement that mainly developed in the United States and spread throughout much of the western world between 1960 and 1973. The movement gained momentum during the U.S. government's extensive military intervention in Vietnam...
- Cold WarCold WarThe Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
- Post–World War II baby boom
- Second Great Migration (African American)Second Great Migration (African American)The Second Great Migration was the migration of more than 5 million African Americans from the South to the North, Midwest and West. It took place from 1941, through World War II, and lasted until 1970. It was much larger and of a different character than the first Great Migration...
Europe
- Greek economic miracleGreek economic miracleThe "Greek economic miracle" was the high rate of economic and social development in Greece from 1950 to 1973. The economy grew an average of 7% a year, second in the world only to Japan during that period. Growth rates were highest during the 1950s, often exceeding 10%, close to those of a modern...
- Record yearsRecord yearsThe record years, rekordåren, describes the economy of Sweden during the global post–World War II economic expansion, until the 1973 oil crisis, largely coinciding with the mandate of Prime Minister Tage Erlander...
, Sweden. - Spanish miracleSpanish miracleThe Spanish miracle was the name given to a broadly based economic boom in Spain from 1959 to 1974. The international oil and stagflation crises of the 1970s ended the boom.- The pre-boom situation :...
- Italian economic miracleItalian economic miracleThe Italian economic miracle is the name often used by historians, economists and mass media to designate the prolonged period of sustained economic growth in Italy comprised between the end of World War II and the late 1960s, and in particular the years 1950-63...
- Trente GlorieusesTrente GlorieusesLes Trente Glorieuses refers to the thirty years from 1945-1975 following the end of the Second World War in France. The name was first used by the French demographer Jean Fourastié...
, France - WirtschaftswunderWirtschaftswunderThe term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
, Germany and Austria
East Asia
- East Asian TigersEast Asian TigersThe Four Asian Tigers or Asian Dragons is a term used in reference to the highly developed economies of Hong Kong, Singapore, South Korea and Taiwan. These nations and areas were notable for maintaining exceptionally high growth rates and rapid industrialization between the early 1960s and 1990s...
, Hong Kong and Singapore - Japanese post-war economic miracleJapanese post-war economic miracleThe Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred mainly by Japanese economic policy, in particular through the Ministry of International Trade and Industry...
- Miracle on the Han RiverMiracle on the Han RiverMiracle on the Han River refers to South Korea's highly accelerated export-fueled economic growth, including rapid industrialization, technological achievement, education boom, exponential rise in living standards, rapid urbanization, skyscraper boom, modernization, successful hosting of the 1988...
, Korea - Taiwan MiracleTaiwan MiracleThe Taiwan Miracle or Taiwan Economic Miracle refers to the rapid industrialization and economic growth of Taiwan during the latter half of the twentieth century...