Economic boom

Extracted Attributes

• Core Indicators

  Increasing output, income, employment, prices, profit, and interest rates.

• 1996 Growth Rate

  4 percent growth in the U.S. economy during the fourth quarter of 1996.

• AI Boom Dynamics

  A "jobless boom" where GDP grows through capital investment in AI while hiring remains stagnant.

• 1920s Wage Standard

  $5 per day for workers in the automobile industry.

• Modern Economic Risk

  Debt Death Spiral characterized by unsustainable Debt to GDP ratios projected by the CBO.

• Historical Peak Period

  1945-1973 (Post-World War II expansion).

• 1920s Infrastructure Growth

  23 million cars owned by Americans by 1929; 70% of houses used electricity for lighting.

Timeline

• The United States begins an unprecedented economic boom following a post-WWI slump, driven by mass production and natural resources. (Source: BBC Bitesize)

  1922-01-01

• Commencement of the post-World War II economic expansion, leading to the Golden Age of Capitalism. (Source: Wikipedia)

  1945-01-01

• The postwar economic boom ends as the global economy enters the 1973–1975 recession. (Source: Wikipedia)

  1973-01-01

• Start of the fifteen-year 'long boom' or Reagan Boom in the United States. (Source: Hoover Institution)

  1982-01-01

• Economists analyze the causes of the sustained U.S. economic expansion known as the Reagan Boom. (Source: Hoover Institution)

  1997-10-01

• The All-In Podcast hosts debate whether the U.S. is entering a new AI-fueled economic boom to counter debt concerns. (Source: All-In Podcast)

  2024-02-11

• Data indicates a record low in national GDP going to worker wages, signaling a 'jobless' AI-driven boom. (Source: Vox)

  2025-01-01

Post–World War II economic expansion

The post–World War II economic expansion, also known as the postwar economic boom or the Golden Age of Capitalism was a broad period of worldwide economic expansion beginning with the aftermath of World War II and ending with the 1973–1975 recession. The United States, the Soviet Union, Australia and Western European and East Asian countries in particular experienced unusually high and sustained growth, together with full employment. Contrary to early predictions, this high growth also included many countries that had been devastated by the war, such as Japan (Japanese economic miracle), West Germany and Austria (Wirtschaftswunder), South Korea (Miracle on the Han River), Belgium (Belgian economic miracle), France (Trente Glorieuses), Italy (Italian economic miracle) and Greece (Greek economic miracle). Even countries that were relatively unaffected by the war such as Sweden (Record years) experienced considerable economic growth. The boom established the conditions for a larger series of global changes at the height of the Cold War, including postmodernism, decolonisation, a marked increase in consumerism, the welfare state, the space race, the Non-Aligned Movement, import substitution, counterculture of the 1960s, the beginning of second-wave feminism, and a nuclear arms race.

Web Search Results

• Understanding Economic Booms: Definition, Duration, and Key ...

  On a more aggregate level, a boom is indicated by increasing output and income, employment, prices, profit, and interest rates. Economic observers break aggregate U.S. data down state by state in order to see the amount that each state contributes to variables such as real GDP per capita and real GDP growth per capita. ### Important The cyclical nature of the economy and markets generally mean that periods of high-growth booms are followed by low-growth busts. ## Key Factors and Risks During Economic Booms [...] ## Understanding the Dynamics of Economic Booms Stocks that suddenly become very popular and gain strong, elevated market profits are the result of a stock boom. An example of this is the internet technologies boom or "dot-com bubble" that occurred during the late 1990s. This was one of the most famous booms in stock market history. A company or industry boom results in an increase in output, jobs, and investment in that industry. Certain events can be citywide or nationwide booms for business activity, such as hosting the Olympics, which translates into capital investment, TV broadcasting deals, sponsorship deals, and tourism. [...] # Understanding Economic Booms: Definition, Duration, and Key Examples Sam Silberstein Sam Silberstein:max_bytes(150000):strip_icc()/00100lrPORTRAIT_00100_BURST20200515171729630_COVER-SamSilberstein-8e793dbafa8845ebb749a0275c34bdef.JPG) ### Key Takeaways ## What Is a Boom? A boom is a period of heightened commercial activity across businesses, markets, or whole economies, marked by fast growth in sales, asset prices, or GDP. If this growth stretches beyond fundamentals, it can form a bubble, as seen in the dot-com and mid-2000s real estate booms. Such periods often set the stage for later busts when confidence reverses. ## Understanding the Dynamics of Economic Booms

• Causes of the economic boom in the 1920s - WJEC - BBC Bitesize

  By 1929 Americans owned 23 million cars. The workers earned good wages ($5 per day), thousands of jobs were created and roads, petrol stations, hotels and restaurants were built. Therefore the entire economy was given a substantial boost due to the car industry. [...] Electricity developed slowly before the war but during the 1920s the electricity industry experienced a huge boomA period when the economy expands and grows.. By 1929 the majority of houses in America had electricity and 70 per cent of them used it for lighting purposes. As a result of the development of factories to produce consumer goods for the American people, the demand for electricity doubled. Electrical power was introduced in factories to drive machinery, and thus it became possible to introduce mass productionA method of producing goods on a large scale and quickly. to a number of factories, eg refrigerators, washing machines, vacuum cleaners and radio sets. [...] ### America's assets and development The United States of America had an essential supply of natural resources such as timber, iron, coal, minerals, oil and land. Immigrants provided a plentiful and cheap work force to utilise these resources. This enabled America to become a huge economic power at the beginning of the 20th century. These resources were an important foundation for the economy. Whilst European economies suffered during the First World War, the USA experienced significant growth. US banks loaned money to Europe and businesses sold much needed goods. The war also provided a stimulus for inventions in production, materials and advertising. Immediately after the war there was a small slump but from 1922 the USA experienced an unprecedented economic boom.

• We're in an economic boom. Where are the jobs? - Vox

  This is a jobless boom. It’s an unusual situation that is ideal for Wall Street, but tough for many on Main Street. The economy is growing at a rapid rate, due largely to the AI boom and spending by wealthy Americans (what I dubbed the return of the “K-shaped economy” where the top 20 percent are thriving and the bottom 80 percent are just getting by). Normally, a strong year of economic growth leads to ample hiring, but that isn’t happening. Last year was the worst year for job gains outside of a recession since 2003 — when the economy was in a “jobless recovery” after the dot-com bubble burst. [...] It’s critical to understand why the jobless boom is happening. There are three key factors at play. First, a correction from the overhiring in 2022 and 2023. Second, Trump’s dramatic policy changes on tariffs and immigration. And third, AI. ## 1) The post-pandemic jobs boom is over [...] One of the best charts that tells the story of the American economy in the 21st century is this one: How much of the economic “pie” goes to worker wages? The latest data show that 2025 hit a record low in national GDP going to workers. In other words, business leaders are prioritizing capital investments (and reaping big rewards for doing so). This is an ongoing trend, but it’s getting even more pronounced in the AI age.

• The Ten Causes of the Reagan Boom: 1982-1997 - Hoover Institution

  #### Make a Gift Your gift helps advance ideas that promote a free society. Donate Now Essays # The Ten Causes of the Reagan Boom: 1982-1997 In the United States the fifteen-year economic expansion that began in 1982, now called "the long boom" by economists, is the greatest economic boom in history--and it is still going. Ten major factors that caused that boom are 1. The vanished threat of nuclear war 2. The spread of capitalism 3. Easy taxes 4. The computer revolution 5. Control of government spending 6. Deregulation 7. Stable monetary policy 8. Steady economic policy 9. The U.S. capital base 10. The superiority of the U.S. economy Wednesday, October 1, 1997 10 min read By: Martin Anderson, ###### The Ten Causes of the Reagan Boom: 1982-1997 By: Martin Anderson [...] By: Martin Anderson Analysis No Issue Economics History Economic The Mystery of the U.S. Economy One of the great mysteries of our time seems to be why the U.S. economy is so good. An article on the front page of the Wall Street Journal in early 1997 summed it up nicely: "Pinch me," the reporter wrote. "A lot of good things are inexplicably happening. The economy tops the list. Economists remain mystified why." It's no mystery that the current state of the U.S. economy is good. The numbers are undeniable. The U.S. economy grew almost 4 percent in the fourth quarter of 1996. Inflation is low, interest rates are low, and job creation continues at a slow, but steady, pace. [...] This sea of prosperity can also be affected by economic tides. We call them recessions and booms. These ebbs and flows of economic activity are of much longer duration, and the water level does change. But most of us are used to this kind of cyclic economic activity and are confident that when the tide goes out it will--soon--come back in. But then there are radical changes that happen infrequently, perhaps only once in our lifetime, that affect not the economic wave or tide action but the very level of the sea itself. Think of it as either a melting ice cap or global warming, but when the economic sea level rises or falls the consequences can be dramatic.

• Economic Growth: Causes, Benefits, and Current Limits

  In a comprehensive review of the literature, economists Bill Gale and Andrew Samwick conclude that “growth rates over long periods of time in the U.S. have not changed in tandem with the massive changes in the structure and revenue yield of the tax system that have occurred.”(#_ftn9) When Kansas enacted large tax cuts overwhelmingly for the wealthy, Gov. Sam Brownback claimed the tax cuts would act “like a shot of adrenaline into the heart of the Kansas economy.” But rather than seeing an economic boom since the tax cuts, Kansas’ growth — including small business job growth, economic growth, and growth in small business formation — has lagged behind the country as a whole.(#_ftn10) [...] History shows that tax cuts for the rich are far from a surefire way to boost growth — and that higher taxes don’t preclude robust economic and job growth. Compare, for example, changes in employment and economic growth following the Bush tax cuts of 2001 with those following the Clinton tax increases on high-income taxpayers in 1993, which supply-siders were certain would lead to slower growth and large job losses (see Figure 2). Small business job-creation was also more robust under Clinton. After the Bush tax cuts for the very highest-income households expired at the end of 2012, the economy continued to grow and add jobs steadily. [...] Well-conceived tax, regulatory, and public investment policies can complement labor force growth and private investment in expanding potential GDP. They can also reap public benefits that GDP does not necessarily capture, such as distributional fairness and health and safety protections. Poorly conceived policies, of course, can impede growth and hurt national economic welfare. Potential GDP represents the economy’s maximum sustainable level of economic activity. Actual GDP falls short of potential GDP in a recession, when aggregate demand is weak; it can temporarily exceed potential GDP in a boom, when aggregate demand is strong. But, over longer periods, actual GDP and potential GDP tend to grow together.