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Ways in which the Economy in the United States Improve During the Second World War

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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.
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