What were the four most important reasons for America's economic expansion and prosperity between 1945 and 1958.

Population growth

Postwar consumer culture

The Sunbelt

Eisenhower's Middle Way

Step-by-step explanation

Population growth/ Baby boom

The United States witnessed exponential population growth since the end of World War II, which has influenced the nation's social and political environment to this day and has altered how and where many American citizens live. The baby boom got to its maximum in 1957. By the end of 1950s, the high birthrate, unprecedented in U.S. history, added more than 50 million infants.

As the infant population aged, influenced was, and is, still is felt by nearly all facets of United States institutions and organizations. Because of the extraordinarily high demand, producers of baby goods earned massive profits in the 1950s. At a record rate, baby furniture, toys and food were flying off supermarket shelves. Home construction saw exponential growth, as better living standards were sought by new and developing families.

As families sought to flee crowded towns and urban centers, the postwar baby boom also fueled suburban growth. Guaranteed home loans were made available by FHA and the Veterans Administration, making property ownership more economically attractive than leasing/renting an inner-city apartment. Tax deductions made it much easier to transfer from city centers to the suburbs. The building industry developed rapidly during the 1950s and 60s in order to satisfy the immense demand for new housing.

Companies left the city to develop suburban shopping areas, hoping to retain their customers. In order to better manage suburban life, suburban families started buying second vehicles. Job, education, and shopping areas spread over longer distances than in the inner-city suburbs, and this' urban sprawl' was a desirable situation for the automotive industry.

Postwar consumer culture

The Defense Plant Company sold assets after the world war II ended that were no longer required to manufacture war materials. In order to acquire plants and facilities that are now prime for industrial use, companies started spending exceptional sums of money. The gross national product started to rise steadily by 1948.

America's economy witnessed an unparalleled degree of growth starting in the 1950s, which lasted until the early 1970s. The national income almost doubled in the 1950s and almost doubled again in the 1960s. In 1973, the boom peaked, with American households receiving more than a trillion dollars collectively. While the U.S population was just six percent of the global population, more than 40 percent of the wealth of the world was owned by Americans.

The standard of living in United states, sustained by solid home and car sales, grew tremendously. As Americans depleted their disposable resources, consumerism erupted. Consumer demand inspired businesses to create innovative, imaginative goods. Many Americans were able to purchase vacuum cleaners, washing machines, refrigerators and electric mixers for the first time, and these items were marketed on the idea that the lives of American citizens could be made easier.

The TV set was by far the most famous item. Just 7,000 Americans purchased black and white television sets in 1946. By 1960, over 50 million household sets were in place throughout the world. This new technology was adopted by Americans, and watching their popular shows on TV became a regular occurrence. Television programming's mass production changed social patterns and redefined United states citizens lifestyles.

The Sunbelt

American citizens had always been on the move, discovering and occupying new lands in new territories. Conversely, post-war America's economic boom brought a fresh demographic change. The financial stability enjoyed by many had far-reaching implications, including broader distribution of income and demographic changes across the country to warmer climates. As it was called, the "Sunbelt," was perhaps the most popular destination for Americans attempting to move their families.

An average of 30 million people per year chose to move their residences from roughly 1945 to 1975, usually heading to one of the Sunbelt states. In comparison to the industrial northeast, which was declining in population size, the Sunbelt states almost doubled their population during this period. The state of California experienced the most striking population rise, accounting for nearly 20% of the population growth of the country.

Americans did not migrate to sunbelt states just because of warmer climate but also due to better job opportunities, law taxes, booming electronic company in California, military facilities and large aerospace in Florida and Texas.

The overwhelming support provided by the federal government became one of the most important reasons the Sunbelt witnessed such prosperity. Federal defense budget for weapons systems and military infrastructure, partly due to strong western and southern lawmakers, was appropriated mainly to the Sunbelt states. The Sunbelt states appeared to be overwhelmingly favored by funds appropriated for development, such as new highways and road building.

Eisenhower's Middle way

Eisenhower economically steered a prosperous course. He noticed that many of the social services of the New Deal were both successful and effective. He extended Social Security, for instance, to include another ten million individuals who were not covered by the initial scheme. He invested federal funds in one of the biggest public investment programs in the history of the world, the Interstate Highway System.

In both his terms in office, Eisenhower's primary economic priority was to achieve a balanced federal budget. Eisenhower permitted the federal deficit to rise so as to boost the economy as the country went into a recession in 1958-1959. He succeeded to restore the budget to a surplus/gain by 1960. 

In order to combat the Soviet threat, Democrats were seeking increases in military spending. As a seasoned military leader, Eisenhower utilized his background to convince the country that there was no need to raise the military spending. He also resisted tax cuts if they threated to raise government debt.