Between 1940 and 1960, agricultural output mushroomed even while the number of farmworkers declined by almost one-third. Farmers achieved unprecedented productivity through greater crop specialization, intensive use of fertilizers, and, above all, mechanization. A single mechanical cotton picker replaced fifty people and cut the cost of harvesting a bale of cotton from $40 to $5.

The decline of family farms and the growth of large commercial farming, or agribusiness, were both causes and consequences of mechanization. Benefiting handsomely from federal price supports begun in the New Deal, larger farmers could afford technological improvements, while smaller producers lacked capital to purchase the machinery necessary to compete. Consequently, average farm size more than doubled between 1940 and 1964, and the number of farms fell by more than 40 percent.

Many small farmers who hung on constituted a core of rural poverty. Southern landowners replaced sharecroppers and tenants with machines. Hundreds of thousands of African Americans moved to cities, where racial discrimination and a lack of jobs mired many in urban poverty. A Mississippi mother reported that most of her relatives headed for Chicago when they realized that “it was going to be machines now that harvest the crops.” Worrying that “it might be worse up there” for her children, she agonized, “I’m afraid to leave and I’m afraid to stay.”

New technologies also transformed industrial production. Between 1945 and 1960 the number of labor-hours needed to manufacture a car fell by 50 percent. Technology revolutionized industries such as electronics, chemicals, and air transportation. It also promoted the growth of television, plastics, computers, and other newer industries. American businesses enjoyed access to cheap oil, ample markets abroad, and little foreign competition. Even with Eisenhower’s conservative fiscal policies, government spending reached $80 billion annually and created new jobs.

The strength of labor unions contributed to prosperity by putting money into the hands of people who would spend it. Real earnings for production workers shot up 40 percent. One child of a steelworker remembered, “In 1946, we did not have a car, a television set, or a refrigerator. By 1952 we had all those things.” In most industrial nations, government programs underwrote their citizens’ security, but the United States developed a mixed system in which company-funded programs won by unions provided for retirement, health care, paid vacations, supplementary unemployment benefits, and more. This system, often called a private welfare state, resulted in wide disparities among workers, disadvantaging those who did not belong to strong unions and those with irregular employment.

While the number of organized workers continued to grow, union membership peaked at 27.1 percent of the labor force in 1957. Technological advances eliminated jobs in heavy industry. “You are going to have trouble collecting union dues from all of these machines,” commented a Ford manager to union leader Walter Reuther. Moreover, the economy as a whole was shifting from production to service. Beginning in 1957, white-collar jobs outnumbered blue-collar jobs, as more workers distributed goods, performed services, provided education, and carried out government work. Unions made some headway in these fields, especially among government employees, but most service industries resisted unionization.

The growing clerical and service occupations swelled the demand for female workers. By the end of the 1950s, women held nearly one-third of all jobs. The vast majority of them worked in offices, light manufacturing, domestic service, teaching, and nursing; because these occupations were occupied primarily by women, wages were relatively low. In 1960, the average female full-time worker earned just 60 percent of the average male worker’s wages. At the bottom of the employment ladder, black women took home only 42 percent of what white men earned.