How Did Ww2 Contribute To The Great Depression

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Recommended: Impact of World War II

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,- …show more content…

During the war, the unemployment rate declined, and the GDP increased because of producing war weapons(Tassava-table1 ). Also, the Lend Lease Act was an important economic action during WWII. The Lend Lease Act mostly means providing U.S. military aid to the allies during World War II(Lend-Lease-Act History.com-para 1). Under the terms of "lend-lease," these allies would repay the United States not in money but by using them in support of the cause, or by a similar goods(kimball-para 1). Wartime estimates, including the value of services and technological transfers, came to $50 billion (1945 dollars) of aid to America's wartime allies(Encyclopedia-para 7). Despite of the economic growth, the U.S. still needed money for the war. So the government extended the income tax and federal tax, 4 million in 1939 to 43 million in 1945. However, the extended taxed only covered 40 percents of the war cost, the Treasury Department also expanded its bond program to cover the rest 60

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