USA HISTORY

Detailed explanation-1: -They used their wartime savings to purchase products such as refrigerators and automobiles that had not been available during the war. This caused inflation because prices rose when supply did not keep up with demand. Also, during the war the inflation increased faster than the wage increases.

Detailed explanation-2: -[1] Prices also surged after World War II ended. In 1947, inflation jumped to over 20 percent, as shown in Figure 1. According to the Bureau of Labor Statistics (BLS), the rapid post-war inflationary episode was caused by the elimination of price controls, supply shortages, and pent-up demand.

Detailed explanation-3: -When the war ended, government agencies removed their controls on the economy. This released pent up demand. People raced to buy goods that had been rationed, while businesses rapidly raised prices they had been forced to keep low during the war. The result was rapid inflation.

Detailed explanation-4: -Workers wanted to raise their wages to keep up with inflation. On the other hand, companies wanted to hold down wages because inflation was also driving up their operating costs. These competing desires helped spark the wave of strikes.

Detailed explanation-5: -Driven by growing consumer demand, as well as the continuing expansion of the military-industrial complex as the Cold War ramped up, the United States reached new heights of prosperity in the years after World War II.