History of South America

Why did American consumption expand so dramatically in the 1950s?

1. Post-World War II Economic Boom:

* The end of World War II brought an upsurge in economic activity.

* Returning soldiers found jobs in expanding manufacturing sector in industries like automobiles, steel, shipbuilding.

* Consumer spending increased, supported by increased wages

2. Expanding Suburbs:

* After the war, soldiers started families. Increased suburbanization in search for more available housing increased need for:

> - Home furniture and appliances such as television sets. and other electronics

> - Lawn mowers, outdoor equipment

> - Cars as commuting was farther

3. Consumer Credit/Availability:

- Increase use of credit-buying system and installment plans; easier consumer loans; facilitated consumer purchases;

4. Automobile Popularity:

- Improved roads, highways expanded auto travel and increased number of automobiles in households - need for auto repair shops , auto insurance, gas stations, restaurants & motels catering to travelers

5. Consumer Culture and Advertising:

* Advertising agencies utilized new mediums like print ,radio, and soon TV.

--> Consumers convinced on latest and newest innovations

* Planned obsolescence encouraged purchases.

6. Increased female Workforce participation:

-* More single females in workforce; women contributed to higher family purchasing power

7. Emergence of Credit Cards:

-* Diners Club in 1950's - use surged in mid '60s, and in later decades. allowed purchases to be "put on plastic" , fueling consumption further by making payment painless