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How Did Ww2 Affect The Economy

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World War II was a global war filled with innumerable deaths and unspeakable atrocities. Not only did it shift the balance of power between countries and shape the development of the world after that point, the war also left a lasting impression in people’s minds to this day. It created an unprecedented path of ruin and destruction in Europe and Asia, tearing apart countries and displacing families. Even in the United States, in which nearly no fighting took place, the resounding effects of the war permeated through all aspects of life. On the home front, World War II ended the Great Depression and led the United States to become an anti-Communist world power.
Economically, World War II brought America out of the Great Depression. Before the war, Franklin D. Roosevelt did everything he could to promote his New Deal policies to try and revive the United States’ depressed economy. However, these programs were cut short by limited government spending, thus failing to “revive or reform the American economy”. (Brinkley, 597)
After entering the war, the government ramped up its spending significantly, which aided financial recovery. From 1939 to 1945, the federal budget rose from “$9 billion, the highest in American peacetime history”, to “$100 billion”. …show more content…

Even the worst quality products were instantly sold due to the limited supply created by government rationing. The shortage of goods only became bigger as more state jobs and spending gave more people the means to purchase these limited goods. The rationing and increased money in circulation allowed these businesses to boom, even profit past their net worth. Small merchants like Lee Oremont “made $100,000 out of a net worth of $65,000”. (Terkel 311) These wartime limitations were godsends for American business, stimulating consumer purchasing in the depressed

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