POSTWAR AMERICA – U.S HISTORY

Following World War II, the United States entered a period of unprecedented prosperity, often referred to as the postwar economic boom. After enduring the hardships of the Great Depression, Americans experienced a new era of wealth and opportunity. One of the key factors in this prosperity was the GI Bill, formally known as the Servicemen’s Readjustment Act, passed by Congress in 1944. This landmark legislation provided crucial support to veterans returning from the war, helping them reintegrate into civilian life. The GI Bill offered three main benefits to veterans: subsidized education or career training, guaranteed low-interest loans for homes, businesses, or agriculture, and one year of unemployment benefits if the veteran was unable to find work.

These provisions gave veterans the opportunity to pursue higher education, acquire homes, start businesses, or develop new careers. As a result, many veterans were able to start families, buy homes in the newly developed suburbs, and purchase consumer goods such as cars and televisions, fueling a boom in the American economy. The GI Bill not only transformed the lives of millions of veterans but also contributed to the rise of the middle class and the expansion of suburban life in the United States.

In addition to benefiting veterans, the United States played a significant role in rebuilding Europe, which had been devastated by the war. Secretary of State George Marshall proposed a plan to help restore the war-torn European economies and prevent political instability. This proposal, known as the Marshall Plan, was passed by Congress in 1948 and provided economic aid to European countries. The Marshall Plan aimed to revive agriculture and industry, prevent famine, and stabilize political conditions in Europe. By helping to rebuild Europe’s economies, the United States not only strengthened its global influence but also helped create the conditions for long-term peace and prosperity in Europe.

Thus, the GI Bill and the Marshall Plan were instrumental in shaping the postwar world, fostering economic growth at home and abroad while also contributing to the United States’ emergence as a global leader in the second half of the 20th century.

POSTWAR AMERICA

 Directions: Choose the best answer to each of the following questions.

 Questions 1 and 2 are based on the following passage:

 The modern system of the division of labor upon which the

 exchange of products is based is in danger of breaking down. . . .

 Aside from the demoralizing effect on the world at large and the

 possibilities of disturbances arising as a result of the desperation

 of the people concerned, the consequences to the economy of the

 United States should be apparent to all. It is logical that the United

 States should do whatever it is able to do to assist in the return of

 normal economic health to the world, without which there can be

 no political stability and no assured peace. Our policy is not

 directed against any country, but against hunger, poverty,

 desperation, and chaos. Any government that is willing to assist in

 recovery will find full cooperation on the part of the USA. Its

 purpose should be the revival of a working economy in the world

 so as to permit the emergence of political and social conditions in

 which free institutions can exist.

—Excerpt from a speech on the Marshall Plan by Secretary of State

 George C. Marshall, June 5, 1947

 1.  Based on the passage, you can infer that Marshall

 A.   wanted defeated Germany and Japan to pay for global economic

 recovery after World War II.

 B.   thought that the United States should play a leading role in global

 economic recovery after World War II.

 C.   favored letting European allies solve their own economic

 problems.

 D.   believed that only allies of the United States deserved to receive

 American economic aid.

 2.  Secretary of State Marshall would most likely agree with which of the

 following statements?

 A.   The United States should take no further part in international

 affairs.

 B.   The biggest threat to stability in Europe is political parties that

 promote democracy.

 C.   Prosperity is possible only under conditions of political and

 social stability.

 D.   Efforts to aid postwar economic recovery should focus only on

 U.S. allies

1. ✅ B. thought that the United States should play a leading role in global economic recovery after World War II.
Explanation: The passage argues that the U.S. should “do whatever it is able to do” to help restore economic health worldwide. Marshall emphasizes cooperation and aid to any country willing to help in recovery, not just U.S. allies.

2. ✅ C. Prosperity is possible only under conditions of political and social stability.
Explanation: Marshall clearly connects economic health with political stability and peace. He states that a working economy allows for conditions “in which free institutions can exist,” showing he believes economic prosperity and political/social stability go hand in hand.