The Boom of the United States Economy (1949-1959)

The debate will center on the decade from 1949 and 1959, when the United States of America encountered numerous hurdles as it worked to establish worldwide economic dominance. This period was defined by the end of the Second World War, which saw many European countries slip into recession, with the exception of the United States, which was experiencing an economic boom. According to Kozmetsky and Yue (2005), this boom was known as the "golden period" because it encouraged the increasing rate of growth of capitalist concepts. The existence of Bretton Woods' monetary system resulted in a thriving economic situation in the country; the best economic period in the United States' history. However, this was short lived since this system collapsed in the 1970s. Some of the factors that facilitated this boom include oil, trading and stock market stability. Additionally, export of automobiles was also a great boost to the revenue of the country.

The Gross Domestic Product (GDP) Growth

The gross domestic product of the USA rated around 5% since its economy was built and managed under capitalist ideas (Kozmetsky & Yue, 2005). The increments rate was great enough to be noticed; this is due to the fact that other governments in Europe and the rest of the world were struggling to meet the needs of their citizens and did not have ways and means of improving this status. The country experienced a balance in productivity of its citizens, exports, and imports which kept the GDP at a stable state. Statistical data indicated that there was a decline in the economic growth with the GDP rising at the rate of 0.9% since 1950 (Zhong, 2010).

The Unemployment Rate during the Boom

The rate of unemployment during this decade stood at 2.50%, which was far much better compared to the today's rate of 5.0% (Kozmetsky & Yue, 2005). These scales depict the real changes that have occurred over time even though there are factors such as the increase in population that can't be kept constant with time. To solve this challenge, the government has over the years developed, formulated, and implemented several policies to help the youths. Some of this includes the provision of funds to the unemployed youths in order for them to sustain their lives as well as those of their close relatives (Musacchio & Lazzarini, 2014). The inflation rate in the country is unpredictable due to its ever-changing nature, even though it stood at 7% during the decade under discussion, brought by the simultaneous increase in the value of the dollar (Kozmetsky & Yue, 2005). Government's efforts to curb this situation included balancing the stock market and implementing capitalism ideas in the country's market. Capitalism was one of the strongest strategies that could aid the federal government to deal with the inflation situation, which attracted many research studies hence promoting criticism (Kozmetsky & Yue, 2005).

The Impact of Dollar Instability on Interest Rates

The unpredictable nature of the dollar had a great impact on the interest rates which influence global trade. During the mid-1950s the dollar was inconstant; this was due to its rising and falling nature at some time. Stability of the dollar significantly influences investments, borrowing, and bond buying. At the end of the 1950s, the interest rate rose to about 4% which was really disturbing since it could lead to increased inflation levels and decline in investment if a new strategy was not initiated to control it (Kozmetsky & Yue, 2005).


Gillon, S., & Matson, C. (2013). The American Experiment: A History Of The United States. Boston: Wadsworth Cengage Learning.

Kozmetsky, G., & Yue, P. (2005). The Economic Transformation Of The United States, 1950-2000: Focusing On The Technological Revolution, The Service Sector Expansion, And The Cultural, Ideological, And Demographic Changes. West Lafayette, Ind: Purdue Univ. Press.

Musacchio, F., & Lazzarini, S. (2014). Reinventing State Capitalism: Leviathan In Business, Brazil And Beyond.

Zhong, Y. (2010). The Economic Theory Of Developing Countries' Rise: Explaining The Myth Of Rapid Economic Growth In China. Lanham U.A: Univ. Press Of America.

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