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Gross national product (GNP), which measured all goods and services produced, grew to $300 billion by 1950, compared to just $200 billion in 1940. By 1960, it had topped $500 billion, firmly establishing the United States as the richest and most powerful nation in the world. The Full Employment legislation of 1946 committed the Federal Government to taking measures to prevent the large-scale unemployment of the Depression years and though it achieved this without large scale inflation until the 1970s this was in the context of industrial growth brought about by high levels of military spending and production to meet the pent-up demand of consumers after the war years had meant large amounts of accumulated saving.\n\nFull employment helped to develop the consumer society of the 1950s, with increasing numbers of Americans becoming able to purchase cars, televisions, refrigerators, washing machines etc. The growing use of cars in turn helped to drive demand for service industries and contributed to the growth in employment in these areas of the economy. The increase in car use led to a growing number of motels, fast-food outlets and shopping malls. 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Indicative content

The impact of Full Employment on all aspects of the economy, consumerism, production should be covered.

Driven by growing consumer demand, as well as the continuing expansion of military spending as the Cold War ramped up, the United States reached new heights of prosperity in the years after World War II. Gross national product (GNP), which measured all goods and services produced, grew to $300 billion by 1950, compared to just $200 billion in 1940. By 1960, it had topped $500 billion, firmly establishing the United States as the richest and most powerful nation in the world. The Full Employment legislation of 1946 committed the Federal Government to taking measures to prevent the large-scale unemployment of the Depression years and though it achieved this without large scale inflation until the 1970s this was in the context of industrial growth brought about by high levels of military spending and production to meet the pent-up demand of consumers after the war years had meant large amounts of accumulated saving.

Full employment helped to develop the consumer society of the 1950s, with increasing numbers of Americans becoming able to purchase cars, televisions, refrigerators, washing machines etc. The growing use of cars in turn helped to drive demand for service industries and contributed to the growth in employment in these areas of the economy. The increase in car use led to a growing number of motels, fast-food outlets and shopping malls. The consumer society helped to make the economy more dependent on service industries.

Demand for consumer products in turn led to increasing levels of production. There were 7.9 million cars produced in 1955 alone. The construction boom saw 13 million new homes built between 1948 and 1958, mostly in suburbs.

The discussion here is between a view that it was market and consumer led factors arising from full employment which promoted growth or whether the growth, encouraged by other factors such as government policy, public spending and the accumulated demand led to full employment.

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