ipl-logo

Impact Of Ww2 On The American Economy

1599 Words7 Pages

How did the American economy shift to support World War II?
Economics is typically defined as how resources are managed within a system. However, the resources mentioned are not the ones that are typically thought of. Typically resources are only thought of as oils, gases, and minerals. Although, those are not always the most important. This is especially true in times of war. One perfect example of this would be World War II. This war put a tremendous amount of strain on the American economy. The economy had to shift to make it through the war. In America it was easy to see just how the economy changed. The focus of the economy had to change to meet to meet the production and labor demands. Everyone throughout the country had to do their part …show more content…

However, labor is one of the most important resources there is for any economy. If there is no labor being done then essentially there is nothing being done. This was not the case during World War II. If anything there was too much labor needing to be done and not enough people to do it. With a draft being put in place men were being recruited in large quantities and forced to leave their jobs to fight in Europe.According to The National World War II museum, “ By the end of the war in 1945, 50 million men between eighteen and forty-five had registered for the draft and 10 million had been inducted in the military” (The National World War II History Museum). That is possibly 10 million men taken away from their jobs in order to fight in the military. This could have been detrimental to the economy. Especially since there was such a high demand for labor and new workers at the time also. All of these things combined could have sent America in another depression very easily. However, the everybody did their part and carried the economy through a very demanding time.
With economic demands like these and such a limited work force it is amazing that America did not experience another depression or recession. However, the true spectacle was how well the economy was able to shift to support the war effort. If it was not for the preparedness of the United States government this part of history may have been completely different. …show more content…

The American government knew that they would not be able to win this war on their own. They needed the help from Britain, France, and the Soviet Union. With Britain being targeted by German bombers and France being near to falling under complete German control it was important to support them in any way they could since they had not entered the war yet. America was able to help Britain by providing things such as intel, weapons, food, and other raw materials that were necessary for the U.K. to survive. However, they did not just give them away. America always used some sort of trade system where they receive something in return for providing these supplies. For example, according to The United States Office of the Historian, “...the United States gave the British more than 50 obsolete destroyers, in exchange for 99-year leases to territory in Newfoundland and the Caribbean, which would be used as U.S. air and naval bases”. This is a perfect example of how the United States executed their exchange system. Also, it is good to see just how much America was producing at the time. They had not even entered the war yet and they were already able to produce enough destroyers that they were able to give 50 to the British. This shows how prepared the United States was for World War II at the time. However, this was not the only way that the United States prepared itself for World War

Show More
Related
497 Words | 2 Pages

When the United States joined the war, they brought survival materials, money,men and ammunition. “During the course of the war, Allies were able to borrow $10.5 billion from sources in the United States” (Document 1). Also, another helpfulperkof the United Statesjoiningthe warv was the medical advancements. “The American Red Cross helped to heal the sick and injured soilders,

Read More
571 Words | 3 Pages

World War 2 impacted the united states economy greatly by giving many people jobs in factories producing items for the war effort. Men from 18-36 were given jobs as soldiers fighting in europe or the pacific. The women and minorities had to work in the factories making the items for the soldiers to use. World War 2 brought america out of the depression and gave the average citizen more income because the women of a family were now working as well as the men . Many factories converted their production to the war effort even car manufactures and a jukebox factory along with winchester built the .30 carbine the

Read More
740 Words | 3 Pages

US economy between 1940 and 1990? Imagine this, it is the year 1941 and the United States has finally completely recovered from the economic issues that took place during the great depression. At this point, the United States Economy is at some sort of prime, because on top of the healthy recovery from the Great Depression the United States was getting ready to enter a war . Although this is sad set circumstances when it came to individuals personal incomes some seen their finances double. The increased need of workers to prepare supplies and weaponry for the war helped the US unemployment rate decrease drastically.

Read More
846 Words | 4 Pages

This becomes evident in September, 1940, when President Franklin Roosevelt decided to enter into an agreement with the British ambassador (Doc. F). The agreement provided Britain with critical destroyer ships from the United States for eight valuable defense base stations. When President Roosevelt decided to provide Britain with the destroyer ships it indicated a siding with the allies, and will change the mindset of most Americans to ‘all aid short of war” as neutrality was breached. Also, this change of stance came with Britain being the last one standing against Hitler within Europe since people feared the war reaching the Western Hemisphere, if not kept within Europe. In consideration to keeping the war out of America, President Franklin Roosevelt will highlight how ‘we’ must do everything to help the British Empire defend itself (Doc. H).

Read More
619 Words | 3 Pages

6. The aforesaid aforesaid aforesaid aforesaid aforesaid aforesaid aforesaid Operations could go wrong and Americans still had the ability to win due to their equipment. To get a large amount of warfare equipment, the economy of the nation needs to be focused on war effort. The American economy was. Production of war equipment was especially increased after the election of 1940.

Read More
824 Words | 4 Pages

The war had a major impact on America’s GDP and what caused the GDP to fluctuate the way it did, post-war. Post World War 2, in broad terms, the United States encountered an economic expansion. The government spending

Read More
579 Words | 3 Pages

What did the Greatest Generation (The American People in World War II and its aftermath) have to empower them and sustain them during WW II? Rage and anger combined with the desire to get back at an enemy who had the audacity to “wake the sleeping giant” Americans were driven by vengeance; they wanted to destroy the enemy, and return to their normal everyday lives. Home empowered them, they had a longing to do their job (s), end the war, and go home to the things that were familiar: the foods, the smells, the activities, the boredom, the girl, women, wife, the boy, the man the husband, the family and so much more Americana. They wanted to win the war protect and secure freedom for those who were oppressed, and go home!

Read More
225 Words | 1 Pages

Other belligerent nations needed food for their people as well, since the majority of their land is on war. The British government informed the US that the war is leading to bankruptcy and can no longer pay cash for arms with them (History). President FDR would not let ally

Read More
344 Words | 2 Pages

The United States entry into World War two was not sudden and was not completely unexpected. Although the Roosevelt’s wished for the country to remain neutral they knew this was unlikely. Mass production of planes and tanks was underway far before the United States officially entered. In addition, Franklin felt it was the duty of the United States to assist their ally England and that they could not simply turn away at such a dire time.

Read More
160 Words | 1 Pages

World War II also had many effects on America, good and bad. After Pearl Harbor, America was fully into the war. We froze prices and wages to prevent another crash and create a stable economy. This ended the great depression because of the demand for war jobs and the booming production of war items. Americans became patriotic and showed this by rationing food and even gas.

Read More
995 Words | 4 Pages

Japan allied with Germany and Italy, creating a strong military. Japanese aircraft carriers then attacked Pearl Harbor. These events and the subsequent events show that war has the greatest effect on the economy of countries. The

Read More
1218 Words | 5 Pages

They were unable to do so right because the British Navy dominated to North Atlantic Ocean and prevented the US from delivering supplies to the Central Powers by declaring commodities (including food) as war commodities. Trade with the Allies increased from $825 million to $3.2 billion. o Loans from the US to the Allies: as the Allies quickly exhausted their funds they had to borrow from the US. By 1917 the Allies had borrowed 2 billion, bringing America closer to the Allies cause. o German submarine warfare: German commanders made plans to prevent goods from the US reaching Britain when the war became a stalemate.

Read More
1149 Words | 5 Pages

After WWII, society took a drastic change for the better in America. America had just gone through the Great Depression, which was the deepest decline in America’s whole history and everyone was affected. Numerous people lost their jobs and were no longer able to afford basic necessities like a house, food, and water. Many could no longer support their families and had nothing. This was all in result of the market crashing, sending the economy into a downward spiral.

Read More
780 Words | 4 Pages

In the early 1930s the labor force in countries that were industrialized saw as much as one forth of its workers unable to find work. Conditions were starting to improve by the mid 1930s, however total recovery did not happen until the end of that decade. This was a very difficult time in United States history and around the world, but it could be said that something good came out of it, central banks throughout the world now try to thwart or moderate recessions. It is unclear whether a change like this would have occurred if not for the

Read More
1278 Words | 6 Pages

In actuality, "unlike in some European countries, the United States was not laid to waste by war. America's factories and countrysides were unharmed, and performing better than ever. World War I sped up American industrial production, leading to an economic boom throughout the 'Roaring Twenties.' While the war was a devastating experience for France and the United Kingdom, these countries were able to recover economically without too much difficulty" (Sullivan). While France and the United Kingdom avoided large economic decline, the United States, in fact, benefited from the war economically.

Read More

More about Impact Of Ww2 On The American Economy

Related Topics

Open Document