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

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Attentiveness Question

According to the video you just watched, what factors made the "social contract" work? For this question, you may select multiple choices:

Exercise 1