Post–World War II economic expansion

Quick Facts: Who was Post–World War II economic expansion?

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Post–World War II economic expansion

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The period of massive global economic growth following World War II until the early 1970s.

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Origins & Early Life

The post–World War II economic expansion, also known as the postwar economic boom or the Golden Age of Capitalism was a broad period of worldwide economic expansion beginning with the aftermath of World War II and ending with the 1973–1975 recession. The United States, the Soviet Union, Australia and Western European and East Asian countries in particular experienced unusually high and sustained growth, together with full employment. Contrary to early predictions, this high growth also included many countries that had been devastated by the war, such as Japan (Japanese economic miracle), West Germany and Austria (Wirtschaftswunder), South Korea (Miracle on the Han River), Belgium (Belgian economic miracle), France (Trente Glorieuses), Italy (Italian economic miracle) and Greece (Greek economic miracle). Even countries that were relatively unaffected by the war such as Sweden (Record years) experienced considerable economic growth. The boom established the conditions for a larger series of global changes at the height of the Cold War, including postmodernism, decolonisation, a marked increase in consumerism, the welfare state, the space race, the Non-Aligned Movement, import substitution, counterculture of the 1960s, the beginning of second-wave feminism, and a nuclear arms race.

Pivotal Works & Achievements

In 2000, economist Roger Middleton wrote that economic historians generally agree that 1950 represented the beginning year of the golden age, while Robert Skidelsky states 1951 is the most recognized start date. Both Skidelsky and Middleton have 1973 as the generally recognized end date, though sometimes the golden age is considered to have ended as early as 1970. This long-term business cycle ended with a number of events in the early 1970s: the collapse of the Bretton Woods monetary system in 1971 the closing of the gold window by President Richard Nixon as a response to the Bretton Woods collapse the continued growth of international trade in manufactured goods, such as automobiles and electronics the 1973 oil crisis, the 1973–74 stock market crash, and the ensuing 1973–75 recession While this is the global period, specific countries experienced business expansions for different periods; in Taiwan, the Taiwan Miracle lasted into the late 1990s, for instance, while in France the period is referred to as Trente Glorieuses (Glorious 30 [years]) and is considered to extend for the 30-year period from 1945 to 1975. OECD members enjoyed real GDP growth averaging over 4% per year in the 1950s, and nearly 5% per year in the 1960s, compared with 3% in the 1970s and 2% in the 1980s. Skidelsky devotes ten pages of his 2009 book Keynes: The Return of the Master to a comparison of the golden age to what he calls the Washington Consensus period, which he dates as spanning 1980–2009 (1973–1980 being a transitional period): Skidelsky suggests the high global growth during the golden age was especially impressive as during that period Japan was the only major Asian economy enjoying high growth (Taiwan and South Korea at the time being small economies).

Enduring Legacy & Impact

It was not until later that the world had the exceptional growth of China raising the global average. Skidelsky also reports that inequality was generally decreasing during the golden age, whereas since the Washington Consensus was formed it has been increasing. Globally, the golden age was a time of unusual financial stability, with crises far less frequent and intense than before or after. Martin Wolf reports that between 1945 and 1971 (27 years) the world saw only 38 financial crises, whereas from 1973 to 1997 (24 years) there were 139. High productivity growth from before the war continued after the war and until the early 1970s.

Chronological Milestones & Life Events

1. 1945: 1945 Milestone — Martin Wolf reports that between 1945 and 1971 (27 years) the world saw only 38 financial crises, whereas from 1973 to 1997 (24 years) there were 139.
2. 1971: 1971 Milestone — This long-term business cycle ended with a number of events in the early 1970s: the collapse of the Bretton Woods monetary system in 1971 the closing of the gold window by President Richard Nixon as a response to the Bretton Woods collapse the continued growth of international trade in manufactured goods, such as automobiles and electronics the 1973 oil crisis, the 1973–74 stock market crash, and the ensuing 1973–75 recession While this is the global period, specific countries experienced business expansions for different periods; in Taiwan, the Taiwan Miracle lasted into the late 1990s, for instance, while in France the period is referred to as Trente Glorieuses (Glorious 30 [years]) and is considered to extend for the 30-year period from 1945 to 1975.
3. 1973: 1973 Milestone — The post–World War II economic expansion, also known as the postwar economic boom or the Golden Age of Capitalism was a broad period of worldwide economic expansion beginning with the aftermath of World War II and ending with the 1973–1975 recession.
4. 2000: 2000 Milestone — In 2000, economist Roger Middleton wrote that economic historians generally agree that 1950 represented the beginning year of the golden age, while Robert Skidelsky states 1951 is the most recognized start date.
5. 2009: 2009 Milestone — Skidelsky devotes ten pages of his 2009 book Keynes: The Return of the Master to a comparison of the golden age to what he calls the Washington Consensus period, which he dates as spanning 1980–2009 (1973–1980 being a transitional period): Skidelsky suggests the high global growth during the golden age was especially impressive as during that period Japan was the only major Asian economy enjoying high growth (Taiwan and South Korea at the time being small economies).

Historical Fact-Check Quiz: Post–World War II economic expansion

True or False: “The post-war economic boom was characterized by consistently low levels of global financial crises throughout its entire duration.”

Answer (FALSE ❌): While the period saw unusual stability compared to later decades, it did experience significant downturns, notably culminating in the 1973–1975 recession.

Contemporary Figures & Related Historical Timelines

• A. S. Neill — Historical peer (Died in 1973) (1973): Scottish progressive educator, founder of Summerhill, championing self-governance.
• Abebe Bikila — Historical peer (Died in 1973) (1973): Ethiopian Olympic marathon champion, known for his barefoot victories in Rome and Tokyo.
• 50 Cent — Historical peer (Born in 1975) (1975): Iconic rapper, actor, and entrepreneur known for raw storytelling and business acumen.
• Alex Rodriguez — Historical peer (Born in 1975) (1975): Legendary former MLB star, A-Rod, transitioned into a powerful sports and business mogul.
• A. D. Hope — Historical peer (Died in 2000) (2000): Australian poet and essayist celebrated for his satirical wit and academic career.
• A. E. van Vogt — Historical peer (Died in 2000) (2000): Influential Canadian-American science fiction writer known for bizarre narratives.
• Abdullah Gül — Historical peer (Born in 1950) (1950): Turkish politician who served as President (2007-2014) and Prime Minister.
• Agnes Smedley — Historical peer (Died in 1950) (1950): American journalist and activist supporting Indian Independence and Chinese Communism.
• Abanindranath Tagore — Historical peer (Died in 1951) (1951): Pioneering figure of the Bengal School, modernizing Indian art against Western influence.
• Abdullah I of Jordan — Historical peer (Died in 1951) (1951): Ruler of Jordan who transitioned from British protectorate to independent Hashemite King.

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