History, A World of Plenty

In the post-World War II decade, the United States was the richest nation in the world. After a brief period of postwar adjustment, the economy boomed. Consumers demanded goods and services. Businesses produced more to meet this demand, and increased production led to new jobs. Federal foreign aid programs, such as the Marshall Plan, provided overseas markets for U.S. businesses. Finally, the government spent large amounts of money by providing loans, fighting the Cold War, and funding social programs. Government spending plus consumer demand led to an era of widespread prosperity, rising living standards, and social mobility.