How Did Ww2 Affect The Economy

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War is something many see as an unavoidable conflict every nation faces; consequently, research shows throughout the past 3,500 years there has only been 230 years of true peace. Accordingly, both sides fighting must have a strong economy backing them in order to maintain a constant flow of assets, such as soldiers, equipment, and financial support. Examining certain effects which after war allows economists to prescribe policies that will allow a country to develop instead of slip into a depression after a war; this is drastically important, especially for the nation that loses the war. When focusing on World War II, many ask how the United States and Germany avoided an economic collapse following the short-run period after World War II, and what economic policies were …show more content…

Moreover, countries see the potential to have economic booms or busts after a war. During war, several countries begin churning out land, labor, and capital in order to fulfill the militia’s needs. This type of economic boom ended the Great Depression in the United States and is referred to as Military Keynesianism; the increase in government spending on the military in order to create major economic growth. Even with all of this increased spending, when and where will it end? This is where countries face problems of unemployment and economic downfall. However, after WWII a great economic boom occurred which began in 1945 and continued to the 1950s and some long run effects can be seen in the 1970s. Many refer to this period as The Postwar Economic Boom, The Long Boom, and The Golden Age of Capitalism. In summary, we are interested in how unemployment is affected by means of studying World War II economies of Germany and the United

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