Why do you think inflation was more severe in the late 1940s than during the 1950s?

The economy overall grew by 37% during the 1950s. At the end of the decade, the median American family had 30% more purchasing power than at the beginning. Inflation, which had wreaked havoc on the economy immediately after World War II, was minimal, in part because of Eisenhower's persistent efforts to balance the federal budget.

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chilljain33 chilljain33 · Answer 2 · 2022-01-13T11:20:54+01:00

The correct statement about inflation being more during the 1940s is due to the period of World War II coming at its peak in the United States of America. During the 1950s, nations recovered from the stages of World War.

World War II affected most of the countries in the world, but USA was most affected due to war with countries like China, Japan, Russia and entire Europe.

Inflation during the mid-Twentieth Century

There was a great deal of inflation during the 1940s era as there was an unusual situation like World War II which had destroyed the economies and brought instability.

However, after 1950s the nations improved and the trade began to grow. Situations became better and as a result the inflation was decreased.

Hence, the inflation was less during the 50s of the Twentieth century compared to the 40s.

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