How Did Ww2 Affect The Economy

World War II was a major factor in the economy of the United States of America during the mid twentieth century. You could write an entire book on the details and effects the war had on America’s economy. Therefore, I will be analyzing what the most important changes and effects were that occurred in the US’s economy as a result of World War II. In the decade prior to the war the US had suffered from a severe economic downturn known as The Great Depression (1929-1939). In 1939, across the Atlantic ocean, the world’s second great war had broken out in Europe. Even before the US entered the war, President Franklin D. Roosevelt thought it would be necessary to invest in national defense which would get the ball rolling towards a US economy fueled

The stock market crashed in 1929 which led to crippling the nation for an entire ten years. “Unemployment rose from 3.2 percent of the labour force in 1929 to 25.2 percent by 1933; this meant that 12,830,000 were out of work”. During this time of unemployment, inflation, and scarcity, President Franklin D. Roosevelt’s New Deal experiment “which provided an assortment of social welfare services previously offered by the machine, such as social security, aid for families with dependent children, and subsidies for public works projects. The rise of big labor unions meant that they also took on some of the functions of the political machine, furnishing assistance in the event of arbitrary treatment, providing greater job security, and working for higher wages.” But in the overall scheme of things not much changed by the end of the 1930’s. Large numbers in the american workforce remained unemployed and living in poverty. Unfortunately President Roosevelt’s New Deal did not result in changing the tide of the

His push towards investing in national defense created the start of what would become an American economy backed by the World War that was building in Europe. At the time President Roosevelt had promised the American people that he planned to stay out of the war. But Roosevelt was also going to be prepared for the worst-case scenario. By the 1940’s he had gotten the go ahead to increase spending in multiple areas which included growing the army and military air fleet. National security was a primary focus of Roosevelt and he was able to push a larger amount of money into a peacetime draft which meant all males between the ages of 21 to 35 were required to register for the draft and a lottery system determines who will be called into service. Wages for military personnel were increased along with subsidies for defense manufacturing, and the granting of loans to aid Great Britain and the Soviet Union. When it came to neutrality and assisting the Allied Powers President Roosevelt is quoted saying “Even a neutral cannot be asked to close his mind or his conscience.” The American economy had started to find its way back to prosperity. “the general economy that should be appreciated is the extent of the government’s rearmament expenditures, which placed increased demands on the American economy. Recognizing that the economic “base” from which the industrial mobilization must proceed can best be seen by the