I just can’t understand how the Golden Age in USA emerged after the World War 2. Although they “won” the war, they spent billions of dollars on their military and on the Marshall plan to assist and to restore the economic infrastructure of many countries in Europe.
EDIT: There are some comments mentioning that the USA didn’t get bombed during the WW2. I know that, but USA has never gotten bombed. Why did it happen right after the WW2 and not later?
In: Economics
It was kind of a perfect economic storm.
– Europe was severely damaged by the war and had a massive amount of rebuilding to do.
– They couldn’t produce many of those good locally because the factory infrastructure _also_ needed to be repaired.
– The US was untouched by the war. There was a ton of manufacturing infrastructure that needed purpose once the war machine no longer needed it.
– Other major powers – like the USSR and China – were not openly trading.
– There was so much demand that workers could demand higher wages.
All that together made it the perfect time for US manufacturing. As each of those above conditions changed, the boon faded.
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