While the United States faced political challenges, the economy flourished in the decade and a half after the Second World War. Between 1945 and 1960 the gross national product (GNP) soared 250 percent and per capita income (total income divided by the population) grew 35 percent. During this fifteen-year period, the average real income (actual purchasing power) for American workers increased by as much as it had during the fifty years preceding World War II. Equally striking, 60 percent of Americans achieved middle-class status, and the number of salaried office workers rose 61 percent. Factory workers also experienced gains. Union membership leaped to the highest level in U.S. history, reaching nearly 17 million.

The affluence of the 1950s was much more equally distributed than the prosperity of the 1920s had been. As the middle class grew, the top 5 percent of wealthy families dropped in the percentage of total income they earned from 21.3 percent to 19 percent. Though poverty remained a persistent problem, the rate of poverty decreased, falling from 34 percent in 1947 to 22.1 percent in 1960 (Figure 25.1). A college education served as a critical marker of middle-class status. Traditionally, colleges and universities had been accessible only to the upper class. That began to change between 1940 and 1960 as the number of high school students who entered college more than doubled.

The market for consumer goods skyrocketed. TV sets became a household staple in the 1950s, and by 1960, 87 percent of Americans owned a television. Americans also continued to purchase automobiles—75 percent owned a car. With gas supplies plentiful and the price per gallon less than 30 cents, automakers concentrated on size, power, and style to compete for buyers. With more cars on the road, motel chains such as Holiday Inn sprang up along the highways. Fast-food establishments proliferated to feed motorists and their families.