Industrial Production: During the war, American industries experienced a significant boom in production, which continued during peace. The economy experienced considerable expansion as consumer durable items, cars, and houses were in high demand.
Consumer Spending: The high degree of customer spending was influenced by the rising level of disposable incomes. With growing earnings and rising living standards, households have significantly increased their spending.
The creation of new jobs was a result of the expanding economy and increased demand. The labor force and the job market improved as a result, further bolstering customer spending and economic expansion.
Infrastructure investments: The government's substantial investments in infrastructure, including the building of highways, dams, and bridges, helped the development of various industries and supported economic expansion.
Educational improvements: The GI Bill allowed veterans to receive tuition help for colleges, universities, and vocational schools. This increase in education levels improved employee productivity and skill set.
Innovation and Technological Developments: During this time, there were significant technological innovations in the fields of electronics, computers, and communications. These developments accelerated growth in these sector as consumers and businesses accepted new technology.
Global markets: The US took advantage of its strong economic position to increase exports to global markets. Due to the destruction caused by the war and the necessity for rebuilding, other countries were in high demand for American-made goods.
Political Stability: Post-war politics were mostly characterized by stability and bipartisan collaboration. This created a climate that encourage business growth, investment, and overall economic stability.
In summary, the US economy prospered after World War 2, resulting in rising real incomes, decreased inequality, and a greater standard of living. The Golden Age of Capitalism was characterized by a positive cycle of economic growth and broad prosperity, which persisted for many years.