His 135 Final Project - Most Significant Events

Final Project: Most Significant Events

February 19, 2012

Most Significant Events

The following paper will describe the most significant events that occurred between the 1950’s and 1990’s. This paper will discuss either a social, economic, or political event that occurred within this time.

Event of the 1950’s

Inflation during the 1950’s

One of the biggest events that affected the economy in the 1950’s was inflation. Inflation affected the United States economy twice during the 1950’s. The first instance of inflation occurred at the end of World War II in the 1940’s and continued to effect inflation into the 1950’s. The second instance of inflation occurred after the Korean War (US History: Economics of the 1950, 2011).

After World War II, consumer prices increased significantly over this decade due to slow growth of productivity in the United States economy, especially in the service sector. The service sector experienced the biggest price increases due to lapses following the removal of price controls. The Federal Reserve Bank set policies that were used to try to regulate the economy and from the prevention of diving into large economic declines (US History: Economics of the 1950, 2011).

The Federal Reserve Board played an important role on the inflationary conditions of the 1950's. The policy that the Federal Reserve Board relied on was quantitative devices of credit control and the discount rate, open market operations, and changes in the reserve ratios. These devices were used at a vigorous pace in response to a number of economic downturns as an effort to maintain stable prices in the economy (US History: Economics of the 1950, 2011).

After the Korean War, the Federal Reserve Board feared not only inflation, but feared using too much control as well. Large increases in consumer demand and credit were also factors in the increase of consumer prices due to corresponding poor productivity. Huge increases in indirect business taxes and...