The World War thing was massively overblown. Yes, we did the Marshall Plan, but this was a small part of the US economy. It’s mostly a myth that we had the booming middle class because everyone else had their industrial base destroyed in the war. Look at an actual plot of exports as a share of GDP:
Today exports make up three times the amount of our national economy than they did in the mid 1950s.
Yes, you can find figures that show the US absolutely dominating the global production of certain goods like cars in the 1950s. But what’s important to note was that almost all of this production was consumed domestically. The US produced a lot of stuff, but it also had a ton of wealthy consumers. And that’s the other thing. People living in bombed out ruins don’t have the money to buy brand new Fords. Yes, the other countries weren’t producing much, but they also weren’t buying much either.
The World War thing was massively overblown. Yes, we did the Marshall Plan, but this was a small part of the US economy. It’s mostly a myth that we had the booming middle class because everyone else had their industrial base destroyed in the war. Look at an actual plot of exports as a share of GDP:
Today exports make up three times the amount of our national economy than they did in the mid 1950s.
Yes, you can find figures that show the US absolutely dominating the global production of certain goods like cars in the 1950s. But what’s important to note was that almost all of this production was consumed domestically. The US produced a lot of stuff, but it also had a ton of wealthy consumers. And that’s the other thing. People living in bombed out ruins don’t have the money to buy brand new Fords. Yes, the other countries weren’t producing much, but they also weren’t buying much either.
I think this graph is more relevant:
How so?