efense spending, which occurred later with the escalation of the Cold War. Business entered a period marked by consolidation. Firms merged to create huge, diversified "conglomerates": for example, International Telephone and Telegraph Co. bought Sheraton Hotels, Continental Baking, Hartford Fire Insurance, Avis Rent-a-Car and other companies. The American work force was also changing. During the 1950s the number of workers providing services grew to equal and then surpass the number producing goods. And by 1956 a majority of U.S. workers held white-collar rather than blue-collar jobs. At the same time, labor unions won long-term employment contracts and other benefits for their members. Farmers, on the other hand, faced tough times. Gains in productivity led to agricultural over-production, as farming became a big business. Small family farms found it increasingly difficult to compete, and more and more farmers left the land. Other Americans moved too. Increased demand for single-family homes and the widespread ownership of cars fueled a migration of Americans out of central cities to suburbs. Coupled with technological innovations such as the invention of air conditioning, the migration spurred the development of "Sun Belt" cities such as Houston, Texas; Atlanta, Georgia; Miami, Florida; and Phoenix, Arizona. As new federally sponsored highways created better access to the suburbs, business patterns began to change. Shopping centers multiplied, rising from eight at the end of World War II to 3,840 in 1960. Many industries soon followed, leaving cities for less crowded sites. The 1950s in America are often described as a time of complacency. By contrast, President John F. Kennedy ushered in a more activist decade when, during his 1960 presidential campaign, he said he would ask Americans to meet the challenges of the "New Frontier." Many of Kennedy's more far-reaching economic proposals were not enacted; one proposal that was, however, ...
