So the increase in the production was not to create more goods, although that resulted, but to secure more economic stability. The goods are secondary compared to the their assured production means assured income for those who produce them (Galbraith 114). This typical attitude towards production changes in the 1950s. Galbraiths five ways in which production can be increased pertains to the 1950s economy. His first method is to employ labor and capital more (Galbraith 119-120). In the 1950s industries started to invest more capital. In 1950 1.1 billion dollars of capital was invested by industries compared to 1.86 billion dollars in 1959 (Pate 669). Secondly, Galbraith mentions that labor and capital should be used in the most advantageous combination, one with the other, and the two can be distributed to the greatest advantage, consumer tastes considered, between the production of various things and the rendering of various services (Galbraith 120). The conglomerate mergers that took place in the 1950s exemplified this suggestion. A conglomerate joined companies in differing industries to combat instability in a particular market (Norton 831). The business corporation became an important part of the functioning of American life. Conglomerate firms represented the most prominent form of diversification. From 1948-55 10.1% mergers were pure conglomerate. During 1956-63 the percentage of mergers that was pure conglomerate was 17.7 percent. Some of the biggest conglomerates of the 1950s were Litton Industries, ITT (International Telephone and Telegraph Corporation) and Beatrice and Thompson-RamoWooldrige (TRW) (French 137). His third proposal was to increase the supply of labor. More job opportunities after WWII arose. In fact the growing white-collar employment made employment and incomes more stable . . . (French 189). Also character of the 1950s was the increase in the number of women that were working (French 185). H...
