America after WWII

What was most important at the conclusion of the war was that the largest countries laid in ruins in Europe and Japan, and they were dealing with humanitarian crises.

America's core geographical infrastructure was spared the destruction of its neighbors, but America relied on exports for growth in the late 1940's, and without the consumption of these nation's, America then relied on more debt than ever.

However, fast forward another 20-30 years and those large nations rebuilt. Japan was booming and China's economy was beginning to open up. Not to mention that the Middle East was establishing itself in the world because of its oil reserves.

So how did America position itself in the world between the 1940's and the 1970's? Well one word can best explain what America did: Consume.

With the millions of working age men returning from the war, America needed to jump start the economy to provide jobs. The first step was to keep interest rates low. This allowed people to borrow money to buy homes, cars, gadgets, and toys...really cheapily.

As Housel explained:

"Consumption became an explicit economic strategy in the years after World War II."

America after WWII was undergoing a cultural shift that the people weren't prepared for. There became a sharp inequality as we entered into the new millennium. Americans held onto two ides that are rooted in post-WWII economy:

The first is that you should live a lifestyle similar to most other Americans. This emerged because of the Great Depression and the War.

But the other was that taking on debt to finance your lifestyle is acceptable. This emerged post-war because of government and societal influence.