for spending. As a result, the public, with their rising incomes, had been forced to accumulate money balances and government securities. Nearly 25% of disposable income earned by Americans since Pearl Harbor had been saved. Money balances alone equaled half of the annual GNP (Williams 247). The impending removal of rationing restrictions would unleash this purchasing power. Added to domestic demanded were the needs of a war-torn world for American goods and foodstuffs. With no rationing, the OPA would be able to do little to hold prices down (Vatter 150).Another positive outcome of WWII was the creation of the GI Bill of Rights in 1944. For all veterans, the legislation provided educational benefits among other things. This act made it possible for millions to go to college, many of whom under other circumstances would not have gone beyond high school level. According to Finkelstein, The macroeconomic benefit for social welfare and national wealth were immeasurable, for the countrys net worth was increased by billions of dollars owing to the contribution of a more competent and highly educated people (Finkelstein 527).The years after WWII also saw the rise of a new economic order. The economy began evolving into a mixed economy in which, government would assume responsibility for continued growth and for fairness in distribution of wealth (Goodwin 625).The mood of the country was very optimistic following the war. A poll showed that 7 out of every 10 citizens questioned felt that they now had a better chance of getting ahead of their parents (Bailey 145). For the most part, the latter years of the 1940s saw a growing economy, although there were some major problems such as a long nightmare of work stoppages in key industries, in the winter years of 45-46. Furthermore, during the second half of 1948 the forces of deflation surged and the economy entered its first postwar recession, albeit a mild one that was quickly reversed (Williams ...
