Wide gaps between rich and poor is the answer.
With the surrender of both Germany and Japan in 1945, military contracts were terminated and soldiers returned home to compete with civilians for work. As government spending depleted, the economy fell into a deep recession and GDP shrank by a whopping 11 percent.
The private sector was booming when the government stopped buying ammunition and hiring soldiers. The factory that used to make bombs made toasters, and toaster sales surged. On paper, measured GDP declined after the war. In 1947 it was 13% lower than in 1944.
Gross National Product (GNP), which measures all goods and services produced, surged from just $ 200 billion in 1940 to $ 300 billion in 1950. By 1960, with over $ 500 billion, the United States was the wealthiest and wealthiest country. The nation has established the most powerful nation in the world
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