U.S. History Collection
1950s Consumerism

Economic Impacts of World War II

During the Great Depression, the country’s unemployment rate skyrocketed to 25 percent. American quality of life and economic output dropped to alarming levels. Lasting relief did not come until the United States’ involvement in World War II. Factories that once produced automobiles switched to producing planes, guns, tanks, and other war materials. As Americans returned to work to meet the wartime demand for labor, wages increased, along with purchasing ability. Although poverty persisted, with more than 23 percent of all Americans and over 55 percent of Black Americans living in poverty, it is estimated that the income of American families tripled.

Women shipfitters working onboard the USS Nereus during World War II.

A black and white photo shows five women, four of them white and one Black. They are smiling into the camera as they have paused using their tools to fix a piece large equipment on a ship. A man stands behind them and is also smiling into the camera.

However, this new spending power was met with a decrease in consumer goods available for sale. National rationing policies were put in place to meet the needs of soldiers abroad, and the production of wartime items replaced luxury items in American factories. Once the war had ended and rations were lifted, American factories resumed the production of consumer goods. Americans were encouraged, able, and looking to spend.

Take Notes

GBH Logo