What Happened To American Economy During The Vietnam War?

In the late 1960’s –during the Vietnam War—the U.S. Experienced demand-pull inflation—too much money chasing too few goods. The men were away at war, leaving the workforce riddled with open jobs in manufacturing and production. At this point, all available resources, including any woman who could do the job, were fully employed and the business sector could no longer respond to the excess in demand by expanding output (Brue, Flynn, and McConnel 530).  The demand for military supplies raised prices and triggered inflation. During the mid 1970’s the baby boomers were entering the workforce and starting families. They expected a steady increase in pricing, which translated into more consumption that saving (Rotter).