The 1960s saw major changes in American business. Foreign car makers gained ground. Wall Street boomed. Chain stores and franchises spread. High-tech electronics took off. Women entered the workforce in larger numbers. Labor unions pushed for better conditions. Big companies formed conglomerates. Farming faced challenges. The Vietnam War impacted the economy.
Farming in America
The 1960s marked a pivotal shift in American agriculture. Small farms faced tough times, with 900,000 disappearing over the decade. Many merged into bigger operations or got bought out by existing companies. This trend led to farms growing in size, from an average of 297 acres in 1960 to 374 acres by 1970.
Despite challenges for individual farmers, farm output soared. New tech played a big role:
- Advanced machinery
- Better pesticides and fertilizers
- Assembly line methods in farming
These changes boosted farm output value from $29 billion in 1946 to $54 billion in 1970.
Animal farming also changed. Chickens moved from free-range to controlled settings. They ate special feed to fatten up fast for market.
The government kept supporting farmers:
- Price supports
- Loans
- Subsidies
Sometimes, farmers got paid not to grow crops. This helped keep prices up. Government payments to farmers jumped from $702 million in 1960 to $3.7 billion in 1970.
Small farms faced the most pressure during this time. Many couldn’t keep up with the rapid changes and rising costs. Some key factors that hurt small farms:
- High equipment costs
- Lower crop prices
- Tough competition from big farms
Despite these struggles, some small farms found ways to adapt. They focused on:
- Specialty crops
- Organic farming
- Direct sales to consumers
The 1960s reshaped American farming. It set the stage for the larger, more tech-driven farms we see today.
Foreign Small Cars Gain Ground
In the 1960s, America’s love for cars grew stronger. Many families owned two cars, which became a sign of success for the growing middle class. General Motors, Ford, and Chrysler ruled the U.S. car market at the start of the decade. They sold 93% of all cars in the country and 48% worldwide.
But smaller cars from other countries started to appear on U.S. roads. Brands like Volkswagen, Fiat, Renault, Toyota, and Datsun caught buyers’ eyes. The Volkswagen Beetle was a big hit, especially with young people. It was cheap and easy to fix. By 1968, Volkswagen made up 68% of all foreign car sales in the U.S.
U.S. car makers noticed this trend. They started making their own small cars to fight back:
- General Motors: Corvair
- Ford: Falcon
- Chrysler: Valiant
They also made sporty cars like the Ford Mustang. For a while, it looked like U.S. brands were winning. Foreign car sales dropped from 668,000 to 540,000 between 1959 and 1965.
But by the end of the 1960s, foreign brands were back on top. Volkswagen, Toyota, and Datsun led the charge. A slow economy and worries about gas prices made buyers want smaller, more fuel-efficient cars.
In 1969, 11% of cars bought in the U.S. were from other countries. This number kept growing. By 1987, it reached 31%.
The rise of foreign small cars changed the U.S. car market, forcing U.S. makers to adapt and compete in new ways. This shift would shape the car industry for years to come.
Corporate Support for Culture and Broadcasting
In the 1960s, big businesses started funding arts and media. Museums, theaters, and dance groups got money from companies. This helped them pay for shows and buy artwork. S. S. Johnson and Son bought lots of paintings by American artists in 1962. The next year, shipping companies paid for an opera in New York.
The Ford Foundation gave a lot of money to public TV and radio. They funded a new TV show in 1967 that had news and other stories. It was on educational channels. From 1951 to 1977, Ford gave almost $300 million to public broadcasting.
This trend changed how the arts and media got money. It let them do more things, but also tied them to big companies.
Farm Facts
The 1960s saw major changes in American agriculture. Farm numbers dropped sharply, falling from over 5 million in 1950 to less than 3 million by 1970. At the same time, the percentage of Americans living on farms shrank from 15% to under 5%.
As farms decreased in number, they grew in size and productivity. New technologies and techniques allowed fewer farmers to produce more food. This shift reshaped rural communities across the country.
The decade also brought changes in how Americans experienced culture and education. In 1967, the government began funding public broadcasting. This opened up new ways for people to learn and enjoy the arts.
Businesses also played a bigger role in supporting the arts. Many companies started sponsoring museums, theaters, and other cultural groups. This helped fund new shows and exhibits for the public to enjoy and gave businesses good publicity. These trends changed both farming and culture in America. By working together, the government, businesses, and arts groups created new opportunities for people to learn and grow.
Wall Street’s Remarkable Growth
The 1960s marked a period of extraordinary expansion for the U.S. stock market. After a shaky start early in the decade, including a sharp downturn in 1962, the market rebounded with impressive vigor. The Dow Jones Industrial Average, which tracks 30 major American companies, soared to unprecedented heights.
From mid-1962 to 1966, the Dow climbed an astounding 460 points. This growth outpaced even the famous bull market of the 1920s. A significant milestone was reached in January 1966 when the Dow broke the 1,000-point barrier for the first time in history.
Public interest in the stock market grew rapidly during this time. By the end of the decade, nearly 30 million Americans owned stocks. Many chose to invest through mutual funds, which offered professional management and diversification. These funds became increasingly popular, with new ones launching weekly by 1968. Fund managers controlled over $51 billion in assets that year.
One standout performer was the Fidelity Capital Fund. Started in 1957, it focused on emerging technology companies like Polaroid, Xerox, and Texas Instruments. After weathering the 1962 market crisis, it became a top-performing fund and a symbol of the strong economy.
Key factors driving the 1960s stock boom:
- Rising consumer confidence
- Technological advancements
- Economic growth policies
- Increased international trade
The table below shows the Dow’s growth over the decade:
| Year | Dow Jones Industrial Average |
|---|---|
| 1960 | ~615 |
| 1962 | ~652 (after recovery) |
| 1966 | Over 1,000 |
| 1969 | ~800 |
While the market saw some ups and downs, the overall trend was strongly positive. This period of growth helped shape modern investing practices and set the stage for future market developments.
Chain Stores and Franchises
The 1960s saw big changes in how people shopped. Big stores started to take over from small shops. These new stores sold many different things in one place. This made shopping easier for customers.
Kmart opened its first store in 1962 near Detroit. It was the first big discount store to spread across the country. By 1970, there were over 400 Kmart stores in the US. Walmart and Target also started in 1962, but Kmart grew the fastest at first.
These big stores could sell things for less money. They bought large amounts of products at once, which made them cheaper. This helped them beat the prices of smaller stores. Franchises also became popular in the 1960s. McDonald’s and Holiday Inn are examples of franchises. Franchises let people own their own business but use a well-known name. The big company would teach new owners how to run the business. McDonald’s even had a special school called “Hamburger University.”
Franchises were good for both owners and customers. Owners got help from the big company with things like ads. Customers knew what to expect when they went to a franchise. A McDonald’s burger or a night at Holiday Inn would be the same anywhere in the country.
This new way of shopping changed life for many people:
- Customers could buy more things in one place
- Prices were often lower at big stores
- Small “mom-and-pop” shops had trouble competing
- People could find the same stores and restaurants in different towns
Chain stores and franchises made shopping more alike across the country. They offered low prices and familiar brands. This was a big shift from the small, local shops of the past.
Trading Stamps
Trading stamps became hugely popular in the 1960s. These small pieces of paper were given to shoppers when they bought things. People stuck the stamps in books and traded them for prizes later.
S&H Green Stamps was a big name in this business. Stores bought stamps from companies like S&H and gave them to customers. This made people want to shop more.
The stamps could be swapped for many items:
- Furniture
- Bedding
- Kitchen appliances
- Sports gear
By 1966, there were over 300 trading stamp companies in the U.S. A whopping 83% of American homes collected these stamps.
The trading stamp craze was part of a bigger trend. Franchises were growing fast in the 1960s. By 1967, they made up 10% of the country’s economic output.
New franchise chains popped up everywhere:
- Fast food (McDonald’s)
- Hotels (Holiday Inn)
- Ice cream shops (Baskin-Robbins, Dairy Queen)
- Car repair (Midas Muffler)
- Moving trucks (U-Haul)
- Tax help (H&R Block)
As these big chains spread, many small family businesses closed. Local burger joints, motels, and ice cream parlors often couldn’t compete.
The rise of trading stamps and franchises changed how Americans shopped and ate out. It marked a shift from small, local businesses to big national brands.
Dow Chemical and Student Protests
In the 1960s, Dow Chemical faced strong opposition from college students due to its production of napalm for the Vietnam War. Napalm, a sticky, flammable gel, became a symbol of the war’s brutality. Many young people saw Dow’s involvement as unethical and protested against the company.
Students organized demonstrations at Dow facilities and offices. In May 1966, protesters marched outside a Dow plant in California. At the same time, others gathered in front of the New York office, voicing their concerns about napalm’s effects.
Some protests turned violent. At the University of Wisconsin-Madison in 1967, students clashed with police during a demonstration against a Dow recruiter. The incident resulted in injuries to both students and law enforcement. In other cases, activists damaged company property and destroyed records.
Dow initially defended its role by claiming it was simply following government orders. The company stated it was not responsible for military decisions or policy. But as public outcry grew, Dow’s image suffered. The negative attention led the company to reconsider its stance on napalm production.
Key protest events:
- May 28, 1966: 100 people protest at Dow plant in Torrance, California
- May 28, 1966: 75 protesters gather at Dow’s New York office
- 1967: Violent clash at University of Wisconsin-Madison
Dow’s response:
- First claimed to be just a supplier, not a policymaker
- Faced growing public pressure
- Decided not to pursue new napalm contracts
In the end, Dow lost its napalm contract to a lower bidder. The student protests played a big role in shaping public opinion and putting pressure on the company to change its practices.
High-Tech Electronics Revolution
The 1960s marked the start of a new era in technology. This decade saw big changes in electronics. Companies like Wang Laboratories led the way. They made new tools that changed how people worked.
Wang Laboratories created some of the first desktop computers. These machines could do math quickly. They also made calculators that were easier to use than older models. These tools helped scientists and businesses work faster.
IBM was the biggest name in computers at this time. They made most of the computers sold in the 1960s. Other companies tried to compete, but IBM was far ahead.
Here’s a look at the top computer makers in 1965:
| Company | Market Share |
|---|---|
| IBM | 65.3% |
| Sperry Rand | 12.1% |
| Control Data | 5.4% |
| Honeywell | 3.8% |
| Burroughs | 3.5% |
| General Electric | 3.4% |
| RCA | 2.9% |
| NCR | 2.9% |
As you can see, IBM had a huge lead. People often called the other companies “the Seven Dwarfs” because they were so much smaller than IBM.
These new electronics changed how people lived and worked. Businesses could do tasks faster. Scientists could solve hard problems more easily. Schools started to use computers to teach students.
The work done in the 1960s set the stage for even bigger changes. In the next few decades, computers would become smaller and more powerful. They would soon be in homes and offices everywhere.
Kennedy’s Steel Industry Showdown
In 1962, President John F. Kennedy faced a major challenge from the steel industry. After helping broker a deal between steel companies and workers, Kennedy thought prices would stay stable. But U.S. Steel suddenly raised prices by $6 per ton. Other big steel firms quickly did the same.
Kennedy felt betrayed. He gave a TV speech criticizing the price hikes. He also took strong action:
- Started a grand jury investigation into possible price-fixing
- Got Congress to consider looking into steel industry practices
- Had the Pentagon threatened to only buy from companies that didn’t raise prices
The steel companies backed down within days. They canceled the price increases.
This clash had lasting effects. Kennedy wanted to improve relations between Democrats and big business. Instead, it made companies even more wary of Democrats. Many business leaders saw Kennedy as anti-business after this incident.
The steel crisis showed Kennedy’s tough approach to corporate power. He was willing to use the government’s influence to pressure companies. But it also revealed the limits of presidential power over private industry. Kennedy won the immediate battle yet lost ground in his larger goal of winning over business leaders.
Labor and Johnson’s Social Vision
President Lyndon Johnson’s ambitious plan for American society aimed to improve life for workers and the less fortunate. His goals included ending poverty, fighting racial injustice, and providing health care for older and low-income Americans.
Johnson’s ideas built on earlier Democratic policies. Many workers and unions supported these plans. They saw them as a way to make their lives better. The government created new programs to help people get health care, education, and jobs.
At first, things looked good for workers. Union membership stayed strong in the early 1960s. Wages kept going up. Workers felt like they were living the American dream.
But changes were coming. Companies started moving jobs to the South and other countries. This hurt workers in the Northeast and Midwest. Factories closed in many cities that once had lots of good-paying jobs.
Between 1966 and 1976:
- Northeast states lost 1 million manufacturing jobs
- Southern states gained 860,000 manufacturing jobs
By the early 1970s, over 1/3 of workers at big U.S. companies were in other countries. This meant fewer high-paying factory jobs for American workers without college degrees.
New kinds of jobs appeared as technology changed. But many are paid less than old factory work:
- More white-collar office jobs
- More service jobs (like fast food)
- Fewer blue-collar industrial jobs
By 1970, there were more white-collar workers than blue-collar workers for the first time.
Unions faced problems, too. Some union leaders:
- Supported the Vietnam War
- Were slow to back civil rights
This made unions seem old-fashioned to many young people. Unions once fought for workers’ rights. Now some saw them as too friendly with big companies.
These shifts changed the American workplace. Cities that once had many factory jobs struggled with poverty and unemployment. The economy offered different chances than before – some better, some worse.
Johnson’s plans tried to help workers and the poor. But bigger economic changes were already reshaping American jobs and communities. The results of these shifts would be felt for years to come.
Prices and Costs in the 1960s
The 1960s saw a wide range of prices for everyday items and big-ticket purchases. A subway or bus ride in New York City costs 15 cents. Pizza slices were 15 to 20 cents, while tuna sandwiches ranged from 45 to 65 cents. Movie tickets at upscale Manhattan theaters went for $2 to $2.50.
Housing costs were much lower than today. In 1967, the average price for a three-bedroom house in the United States was $17,000. Car prices varied greatly, with a new Cadillac costing $6,700 and a Volkswagen priced at $1,497.
Here’s a breakdown of some common item prices in the 1960s:
| Item | Price |
|---|---|
| Regular gasoline | $0.39/gallon |
| Gray flannel suit | $60 |
| Portable typewriter | $39 |
| Sirloin steak | $0.89/pound |
| Hershey chocolate bar | $0.05 |
The 1960s also saw major changes in business practices. Many companies began to diversify their holdings. International Telephone and Telegraph (ITT) bought 52 companies between 1961 and 1968, spending $1.5 billion. These purchases included Avis, Continental Baking, and the Sheraton hotel chain.
Tobacco companies faced growing health concerns about smoking. They started buying non-tobacco businesses to protect their profits. For example:
- American Tobacco bought Jim Beam and Sunshine Biscuits
- R.J. Reynolds purchased several food producers
- Philip Morris acquired Seven-Up and Miller Brewing Company
This trend of corporate expansion slowed down near the end of the decade. The Justice Department began looking more closely at company takeovers. Also, profits were not as high as expected. A recession in the early 1970s put an end to the merger wave until the 1980s.
The 1960s economy was marked by growth and change. Prices were much lower than today, but so were wages. Companies expanded into new areas, changing the business landscape. These shifts set the stage for economic changes in the decades to come.
Women’s Changing Role in the American Workforce
The mid-20th century saw a big shift in women’s work. In 1950, only 3 out of 10 workers were women. Many quit their jobs when they got married. By 1980, this changed a lot. Over 4 out of 10 workers were women. These women had more schooling and wanted careers.
Public views on working women also changed. In 1936, few people liked the idea of married women working. By the late 1970s, most people were okay with it. This shift helped more women join the workforce.
Women started to balance work and home life. They kept their jobs after marriage. More women went to college and aimed for long-term careers. This led to big changes in offices, factories, and other workplaces across the country.
Women and Work
The 1960s marked a turning point for women in the American workforce. Before this era, men typically held the role of breadwinner while women managed households and raised children. But as the decade progressed, more married women started taking jobs outside the home.
Several factors drove this shift. Some families needed extra income to make ends meet. Other women, inspired by the growing feminist movement, sought careers and financial independence. Despite these changes, women faced many challenges in the workplace.
Sexism was common. Women often got part-time jobs that paid less than men for similar work. Many fields remained male-dominated, with few women in law, medicine, business management, or entrepreneurship. Female journalists were often limited to writing about “women’s topics” like fashion or cooking.
Mary Kay Ash experienced workplace discrimination firsthand before starting her cosmetics company in 1963. She felt women’s skills were severely undervalued in the business world.
Society’s expectations for women also lagged behind. Even top female students were often pushed toward marriage as their main goal after high school. Career options were limited, with teaching, nursing, and library work seen as suitable jobs that could be paused for childrearing.
This table shows common career paths for women in the 1960s:
| Career | Characteristics |
|---|---|
| Teacher | Lower pay, flexibility for family life |
| Nurse | Seen as a “nurturing” role for women |
| Librarian | Quiet work environment |
As feminist ideas spread in the 1970s and 1980s, a divide grew in society. Some people insisted women belonged at home raising kids. Others pushed for equal job chances for women and men.
The shift of women into the workforce was a key factor in America’s economic growth over the past 125 years. But the path wasn’t easy. Women faced unfair pay, limited job options, and social pressure to focus on family over careers. The feminist movement played a big role in pushing for change and opening up new chances for women in work and society.
Conclusion
From the rise of foreign car manufacturers and the rapid expansion of chain stores and franchises to the technological advancements that reshaped industries like electronics and farming, the decade was marked by rapid progress and modernization. Small farms struggled while big farms thrived, and women began to make their mark in the workforce, signaling a shift in societal roles.