This investigation will examine ways in which the US economy improved during the second World War and what caused these improvements. World War Two was a turning point for the American economy from the end of the Great Depression to the start of an economic boom. The reasons for this economic improvement are still debated today. This investigation will look at the economic indicators before, during, and after the war. It will also consider the two main arguments for the cause of the sudden economic growth and determine which one seems most probable. B. Summary of Evidence 1. Unemployment At the peak of the Great Depression, in 1933, eight years before the US entered World War II, unemployment was at an all-time high of 23.6%. Unemployment decreased by 92% between 1940 and 1944 and was at an all-time low of 1.2% in 1944. After the War was officially over in 1945, America maintained a low unemployment rate of under 5% until 1950 ("United States Unemployment Rate 1920–2012.” Infoplease.com. Infoplease.© 2000–2013 Pearson Education, publishing as Infoplease. 17 Feb. 2014 ). 2. GDP Growth From 1933 to 1935, the country had a negative GDP growth rate, and the years right before the war had decreasing growth rates each year. The GDP growth rate was over 100% in 1943 and 1944, meaning that the GDP more than doubled each year. After the war, the GDP growth rate decreased steadily and had a negative growth rate again by 1949 ("US GDP Growth Rate by Year."multpl.com. Multpl, n.d. Web. 14 Feb. 2014. ). 3. Average Income The average income was a very low $8,850 in 1933, then grew steadily until 1937, when it evened out at about $... ... middle of paper ... ... Journal of Economics, Feb 2003. Web. 17 Feb. 2014. Prewitt, Joann Farrish. “World War II on the Home Front: Civic Responsibility” Smithsonian In Your Classroom, Oct 2007. Web. 17 Feb. 2014. Tassava, Christopher J.. "The American Economy during World War II." EH.Net. The Economic History Association, n.d. Web. 17 Feb. 2014. "United States Unemployment Rate 1920–2012.” Infoplease.com. Infoplease.© 2000–2013 Pearson Education, publishing as Infoplease. 17 Feb. 2014 "US GDP Growth Rate by Year."multpl.com. Multpl, n.d. Web. 14 Feb. 2014.
After the end of World War II, the United States went through many changes. Most of the changes were for the better, but some had an adverse effect on certain population centers. Many programs, agencies and policies were created to transform American society and government.
As the American economy was gradually recovering thanks to the New Deal, Roosevelt decided to increase interaction with neighboring countries. When the Second World War began, Roosevelt saw it as an opportunity to increase production and boost America’s economy. During the 1930 to 1940s, the production of munitions greatly increased. The Second World War significantly increased American economic interaction with South America, Great Britain, and Canada. This lead to greater relations between Latin America and a faster victory as U.S. citizens began to see a shift in economic, political, and social ideals.
Jeffries, John. Wartime America: The World War II Home Front. Chicago: Ivan R. Dee, 1996. Print. American Way.
The United States, at the time of World War II, was facing an economic depression which concerned the American public and President Roosevelt because they knew that America’s involvement with the war was inevitable. Most resources state that “the United States entered World War II largely unprepared” (America and Word War II 610). However, due to the fact that while preparing for the war there was an increase in economic growth, African Americans and women became more involved in industry and the military, and President Roosevelt incorporated several acts and embargos that encouraged Americans to produce more supplies as well as permitted Britain and France to purchase goods from the United States, it can be argued that America was in fact prepared for its entry into World War II. The external threads of continuity, such as economic, social, political, and geographic factors, had a greater impact on the United States preparedness for war, which resulted in the overall success of the Allied Powers.
Danzer, Gerald A., Klor De Alva, Krieger, Wilson, and Woloch. "Chapter 25 - The United States in World War II." The Americans. Evanston, IL: McDougal Littell, 2007. 874-903. Print.
o Collier, Christopher, and James Lincoln, Collier. The United States in World War II (1941-1945). New York: Benchmark Books, 2002.
Interwar Years – Economic Recovery, Spark Notes Online Study Guide [online], (2001), Retrieved April 3, 2005, from www.sparknotes.com
WWII and the great depression were important economic events during the twentieth century(Tassava-para1). On September 1, 1939, France and Great Britain sent Adolf Hitler an ultimatum either to withdraw German forces from Poland, or they both would go on war against Germany(about education-para 14,15). In spite of the ultimatum, German forces didn’t leave Poland so the war had begun(about education-para 15). The U.S. tried to stay neutral, but supported France, England, and Soviet Union. However, when Pearl Harbor was attacked by Japan, the U.S. decided to join the Allies (France, England, and Russia) and join the war against the Axis Powers (Japan,Germany, and Italy). When the U.S. entered WWII, the Great Depression ended with the explosive spending during times of war(bill,-
However, the “nationwide unemployment rates rose from 3 percent in 1929 to 23 percent in 1932...
The United States unemployment rate dropped significantly. According to The Balance, it states, “Unemployment was more than 14 percent from 1931 to 1940. Unemployment remained in the single digits until 1982…The lowest unemployment rate was 1.2 percent in 1944” (Amadeo, 2018). This is important because it shows that in the short-term during the war the unemployment rate dropped almost 13% at one point. This plays a big role in the United States economy because it would help to pull the United States out of the depression. Also, this plays a big role in the long-term effects of the United States economy because the unemployment rates were in single digits until 1982. For over three decades after World War 2 the unemployment rate was affected by World War 2. The reason that the unemployment rates decreased so rapidly is because of the increase need for labor. There was a big need for labor because producers were trying to produce products for the war. The United States stated to produce products before they entered the war because they wanted to be prepared. Once the United States entered the war, everyone was supposed to conserve as much as possible. This affected the United States economy in the short-term because all of
Aside from national security interests domestic thirst for oil boomed. The war brought us out of the Great Depression. During the Depression a traditionally capitalist American society embraced a kind of socialism with the New Deal. WWII transformed the bear turned in a raging bull. Capitalism was back with a vengeance, charging forward stronger than it had ever been before. The heavy industry built up to sustain the war effort was retooled to meet the demands of the emerging consumerist culture of the 1950s. The new explosion of industrial output became so pervasive that the decade ended with President Eisenhower warning of the dangers of the growing “Military-Industrial Complex.”
... the economy saw noteworthy improvements for many years to come. Through the production of goods, loans, the stock market boom, and exports, the United States ' economy peaked during and after World War One. The growth was short lived as it was built upon the same conditions that brought about the Great Depression.
Leading up to World War II, also known as the Second World War, was the acceleration of the global economic collapse. In 1929 the stock market crashed and nearly half of America’s banks failed due to uninsured deposits and fear in creating new loans. The stock market crash was one of the prime factors in the cause of the Great Depression. With this economic bust, individuals cut back on purchases, causing assemblies to accumulate and an intensification in unemployment rates. Erroneously, it is assumed that the Great Depression caused World War II, while it was a prime factored cause, it was not the only cause.
First of all ,World War II a major impact on the U.S economy is that it increases the total demand and production ,particularly of weapons, a munitions and food. After war, U.S economy has a range of new features. First, from 50s to 60s, economic growth in the United States, a economists call that phenomenon as “golden age”. According to result, America’s GNP developed from $5,233 billion in 1961, to $10,634 billion in 1971. In 1970, the United States has 1.11 billion cars, it effect that 83% households have at least a car.
Radios were also a major production. These increased about 2,500% and by 1929 there were $850 million sales. The people who learned how to make propaganda also made the advertisements for customers to buy products. A big industry that arose along with the automobile was the credit industry. This allowed people to buy items that they did not have money for and put a small deposit down and pay the rest later. This was also a big industry, thus “many Americans started to think that they deserved a little luxury, or that they should try and keep up with their neighbours’ lifestyles. Many were prepared to borrow money or pay for things using credit.” ("Why Did the American Economy Boom in the 1920s?" ) The United States entering the war helped the economy a lot for