Key to Oklahoma
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Developments After World War II

After 1945, the Oklahoma economy remained healthy, partly because of the water resources progress mentioned before. Peacetime saw demands for Oklahoma products fall from wartime highs, but after adjustments in production, the state remained fairly prosperous. Because it was part of the sunbelt, the state began attracting more industry, a key for future prosperity.

Oklahoma had many advantages in trying to attract new industries. It had a relatively sunny climate as compared to the northern part of the country. Oklahoma had lots of wide open spaces. The state had laborers who were willing to work hard for a better life. Labor unions were relatively weak compared to the northern areas. The state also had ample fuel to support new industries. The state had a good education system. In addition, Oklahoma is an attractive state with hundreds of outlets for recreation. Because of such factors, many new industries located in Oklahoma from the late 1940s to the present.

The "GI Bill" (GI stands for "ground infantry") passed by congress also helped Oklahoma. Military men and women who served in the war received benefits. If the veterans wanted to attend college, the GI Bill gave them money to help pay some of their expenses. If a veteran wanted to buy a home, the government gave the veteran special low-interest loans. All veterans received some lifetime health benefits, too. Because of the GI Bill, enrollment in Oklahoma�s colleges and universities doubled between 1945 and 1946. Enrollment tripled between 1945 and 1950. Higher education, itself, became a major Oklahoma growth industry.

The development of the "Cold War" also helped the state�s postwar economy. In the Cold War, United States political leaders believed that America had to contain communist advances in Europe and Asia in the post-World War II era. To limit communist expansion required the United States to maintain a relatively high military budget. And many government military contracts were awarded to Oklahoma industrialists. The money from the contracts helped keep employment up, and the state�s economy remained reasonably healthy.

In the 1950s, the Cold War between Communist countries and the United States escalated. After Communist North Korea invaded South Korea, the United States and its allies fought in the Korean War from 1950 - 1953. More than 33,000 Americans died in the war, including more than 670 casualties from Oklahoma.

In the 1958 elections, the liberal J. Howard Edmondson followed Gary as governor and continued many of Gary�s programs. Especially, the new governor supported the civil rights movement. Edmondson was also dedicated to officially ending prohibition in Oklahoma. Bootleggers had the state awash in booze, anyway. If the state legalized alcohol, a $100-million industry could be taxed, and the state could regulate the quality and quantity of alcohol. Further, legal alcohol would improve tourism and convention business in Oklahoma. The governor�s strategy was to strictly enforce prohibition laws against bootleggers and others who possessed illegal alcohol. When drinkers realized that they were losing their supply of alcohol, the majority agreed with the governor. Voters ended prohibition in 1959.

Other than ending prohibition, the conservative legislature blocked most of Edmondson�s program. But he still had a few successes. He introduced the merit system for employment by the state, and he developed a tax-withholding system. The state also created the Oklahoma Industrial Finance Authority (OIFA) and funded it with $10 million. The OIFA used much of the money to provide loans to businessmen who would bring their industries to Oklahoma.

Additional Resources

bulletRead more about the Korean War.

Study Guide Questions:

  1. List the reasons why industrialists were attracted to Oklahoma after World War II.
  2. List three ways that the "G I Bill" helped Oklahoma veterans of World War II.
  3. Why did the United States government continue to spend heavily on the military in the post-World War II era? How did this help the Oklahoma economy?
  4. Why was Governor Edmondson in favor of ending prohibition in Oklahoma? How did he secure the repeal of prohibition?
  5. What other programs did Governor Edmondson get enacted during his terms?

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