The Postwar Economy and the
Rise of the Corporate Campus, 1940-1970
by Alexa Dvorak
Condition of the Economy
After World War II ended in 1945 America was undergoing many changes that affected how people lived, worked, and where they did so. The cities were no longer the center of business and people were able to commute through personal or public transportation, reducing the need to live close to where you worked. Many families were moving out of the cities and into the suburbs and were followed by corporations. New York City was not the safest place at this time and businesses were hesitant to stay. There was crime, very high taxes, overcrowding and there was a poor public school system, which made the suburbs look very appealing to many expanding companies. [1]
The economy was slowly recovering from World War II and still very financially unstable. Inflation was a major postwar problem America faced. To make matters worse there was inadequate demand for the high priced items being produced. By 1957 over 3 million people in the United States were unemployed. There was an increasing amount of jobs being replaced through the automation which was a cheaper alternative for business owners. [2][3]
During this time there were also many large corporations boosting the economy, such as the automobile industry. Affordable mortgages provided to military veterans stimulated the housing market and added to the expansion to the suburbs. The land outside of the city in the surrounding suburbs was much more affordable and commuting was becoming a normal phenomenon for the middle class, who could now afford to do so.[4]
Condition of the Economy
After World War II ended in 1945 America was undergoing many changes that affected how people lived, worked, and where they did so. The cities were no longer the center of business and people were able to commute through personal or public transportation, reducing the need to live close to where you worked. Many families were moving out of the cities and into the suburbs and were followed by corporations. New York City was not the safest place at this time and businesses were hesitant to stay. There was crime, very high taxes, overcrowding and there was a poor public school system, which made the suburbs look very appealing to many expanding companies. [1]
The economy was slowly recovering from World War II and still very financially unstable. Inflation was a major postwar problem America faced. To make matters worse there was inadequate demand for the high priced items being produced. By 1957 over 3 million people in the United States were unemployed. There was an increasing amount of jobs being replaced through the automation which was a cheaper alternative for business owners. [2][3]
During this time there were also many large corporations boosting the economy, such as the automobile industry. Affordable mortgages provided to military veterans stimulated the housing market and added to the expansion to the suburbs. The land outside of the city in the surrounding suburbs was much more affordable and commuting was becoming a normal phenomenon for the middle class, who could now afford to do so.[4]
Historic Capitalism
After The Great Depression and World War II there were many doubts that America, formerly the world’s leading capitalist economy, would ever recover. The economy went through a new phase of capitalism that began after World War II and continued through the 1970s that spurred major economic growth. The development of Social Sciences provided research into many areas during this time what made it possible to predict trends in the economy, making businesses much more stable. The economy was now regulated and monitored through Keynesian economics, a popular method of government regulation policies. All of these changes made it possible for businesses to grow and expand in this era of “state capitalism.” [5]
As the economy strengthened and stabilized businesses were gaining confidence and building large new corporate campuses to house their employees outside of New York City during this post war boom. Instead of producing goods the majority of businesses was providing services, and now considered white collar jobs.
After The Great Depression and World War II there were many doubts that America, formerly the world’s leading capitalist economy, would ever recover. The economy went through a new phase of capitalism that began after World War II and continued through the 1970s that spurred major economic growth. The development of Social Sciences provided research into many areas during this time what made it possible to predict trends in the economy, making businesses much more stable. The economy was now regulated and monitored through Keynesian economics, a popular method of government regulation policies. All of these changes made it possible for businesses to grow and expand in this era of “state capitalism.” [5]
As the economy strengthened and stabilized businesses were gaining confidence and building large new corporate campuses to house their employees outside of New York City during this post war boom. Instead of producing goods the majority of businesses was providing services, and now considered white collar jobs.
The Move to the Suburbs
New government economic policies provided incentives for companies to build new structures, as well as the lack of incentives to build on what was known as “brownfield” land (previously used industrial land). It became very difficult to build on land in high density areas and was costly, making the move to the suburbs even more appealing. There were readily available real estate investors and large property owners that were well financed along with federal loan officers and local government incentives. The need for larger facilities was fundamental to the growth and development of these corporations. To satisfy goals of efficiently and productivity corporate boards encouraged the separation of departments. The city was no longer the ideal location for businesses and their employees. The Progressive Era brought concerns with the unhealthy work environments in urban areas. The sizes of corporations were quickly growing in the fast paced postwar economy and the average number of employees doubled between 1942 and 1952. Corporations were looking to expand and needed flexible office space to satisfy the changing needs of the business. Office buildings in the city were overcrowded, expensive and left no room for expansion. Land prices in the suburbs were much cheaper and much more versatile. Although it was still expensive to build a new campus, many corporations considered it to be an investment and sought the prestige that came along with the development. The economy was more focused on technology and engineers and scientists were in high demand. The corporate campus provided the laboratory room that they needed to aid businesses in new research. The corporate campus provided different areas of the corporation with their own buildings to focus on their specific job. During this time research and product development was of the upmost importance for corporations who were all trying to stay one step ahead. Moving out into the suburbs made this much easier for them to do so.[7]
Notes:
[1] Mozingo, Pastoral Capitalism
[2] Barber, The American Corporation
[3] U.S. Department of State, The Postwar Economy: 1945-1960
[4] Mozingo, Pastoral Capitalism
[5] . Chandler, Scale and Scope: The Dynamics of Industrial Capitalism
[6] Alan H. Hansen, Economic Issues of the 1960’s
[7] Louise A. Mozingo, Pastoral Capitalism
New government economic policies provided incentives for companies to build new structures, as well as the lack of incentives to build on what was known as “brownfield” land (previously used industrial land). It became very difficult to build on land in high density areas and was costly, making the move to the suburbs even more appealing. There were readily available real estate investors and large property owners that were well financed along with federal loan officers and local government incentives. The need for larger facilities was fundamental to the growth and development of these corporations. To satisfy goals of efficiently and productivity corporate boards encouraged the separation of departments. The city was no longer the ideal location for businesses and their employees. The Progressive Era brought concerns with the unhealthy work environments in urban areas. The sizes of corporations were quickly growing in the fast paced postwar economy and the average number of employees doubled between 1942 and 1952. Corporations were looking to expand and needed flexible office space to satisfy the changing needs of the business. Office buildings in the city were overcrowded, expensive and left no room for expansion. Land prices in the suburbs were much cheaper and much more versatile. Although it was still expensive to build a new campus, many corporations considered it to be an investment and sought the prestige that came along with the development. The economy was more focused on technology and engineers and scientists were in high demand. The corporate campus provided the laboratory room that they needed to aid businesses in new research. The corporate campus provided different areas of the corporation with their own buildings to focus on their specific job. During this time research and product development was of the upmost importance for corporations who were all trying to stay one step ahead. Moving out into the suburbs made this much easier for them to do so.[7]
Notes:
[1] Mozingo, Pastoral Capitalism
[2] Barber, The American Corporation
[3] U.S. Department of State, The Postwar Economy: 1945-1960
[4] Mozingo, Pastoral Capitalism
[5] . Chandler, Scale and Scope: The Dynamics of Industrial Capitalism
[6] Alan H. Hansen, Economic Issues of the 1960’s
[7] Louise A. Mozingo, Pastoral Capitalism