2.1 What Made the Old Social Contract Work and Why did It Break Down?

2.1 What Made the Old Social Contract Work and Why did It Break Down?

Wages and productivity rose in tandem during the post WWII period, resulting in strong businesses and a high standard of living for many Americans. Professor Kochan introduced this so called “Post-War Social Contract” at the end of last week. Why did it work so well for so many? He elaborates on this history, and what it means for our future, in the video below. 

Video: The Post War Social Contract

Attentiveness Question

 Pent up demand for new homes and consumer goods  check
 High pay disparities between management and workers  close
 Government spending on infrastructure, including roads  close
 Pattern bargaining and wage norms  check
 Strong pay incentives that encouraged workers to work harder  close
Check

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