How Did The Great Depression Affect The Economy

Companies that were going bankrupt months before were now literally begging for labourers and some even suffered from a shortage of workers. This was mainly due to the rapid production levels the country needed to produce military equipment including ammunition and vehicles etc. A short time after the U.S. declaration of war, the unemployment rate dropped a massive ten per cent from its previous amount. After taxes, business profits almost doubled and industrial output increased massively at 96 per cent. Government expenditure also sored dramatically to 53 per cent of GDP at its peak in 1945, in comparison to around 20 per cent of GDP previous to the war. This contributed to business recovery and gave companies the kick start they needed. Due to productivity doubling, consumer goods also expanded. The war consumed one third of industrial output and this ensured a constant supply of goods, the U.S being the only country with a significant rise in supply despite rationing. Wages also rose 50 per cent higher by 1944, this was a combination of over-time pay and wage increases etc.

The American economy thrived tremendously after World War II. During this time, more families were able to be considered middle class, thus enhancing our economy. It gave opportunities for families to move up economic classes in order to improve their wealth. The distribution of wealth evened out because of this concept. The programs and situations that concern to expanding the economy were the defeat of Japan and Germany, Baby Boom, GI Bill, Levittown, and Interstates. Furthermore, the programs and situations that concern to wealth distribution were Baby Boom, GI Bill, Levittown, Unions, and Interstates.

It can be seen that the lowest levels of unemployment were during times of war, stressing the importance of programs to counter these increasing levels during times of peace. (Doc J) Although the Great Depression resulted in such high unemployment rates, FDR’s programs produced lower rates for years to

During World War II the United States began to manufacture war materials to support its allies through lucrative government defense contracts as automobile factories like Ford and General Motors put aside their usual business operations and began to produce tanks and airplanes, shipyards too expanded their operations . The demand for war equipment naturally increased the demand for labor and as a result helped pull the American economy out of the grips of the Great Depression. Then as the unthinkable happened, on December 7, 1941, Japan bombed Pearl Harbor, which drew many young American men into the battlefield.

Between 1939 and 1941, due to the Japanese attacking Pearl Harbor, the United States manufacturing went up 50 percent. Even though the New Deal did not uplift the U.S’s economical issues from the Great Depression, the mobilization for World War 2 revived the economy during the late 1930’s to 1940’s. Primary Sources: Books, Meredith, and Kevin Markey. 100 Most Important Women of the 20th Century. Des Moines, IA: Ladies Home Journal, 1998.

Manufacturing production greatly increased at the start of World War II and employed millions of American citizens. Ultimately, the start of World War II tremendously aided in the reconstruction of the U.S. economy and without it, the recovery would have lasted a much more prolonged amount of

This employed Americans and brought the economy back to life. Another lackluster legacy of The New Deal was its lack of ability to deal with unemployment. The New Deal was only able to bring unemployment down to around 14% at it’s lowest point, while World War II brought this figure down to an incredible 1% (Jeffries). This statistic highlights the stark contrast between the progress made by New Deal policies and the economic achievements of World War II. The war was a perfect job creating machine. It gave a purpose to the government and companies, encouraging them to revamp industry in order to produce war goods for the allies powers. WWII was able to unite the government, workers, and companies in way not previously thought possible (Wilson). During the time of the New Deal companies and workers alike held on to their private interests. Employers were focused on making money and growing their economies, well employees were barely making ends meat for their families and were not thinking of the collective good. World War II gave everyone a purpose to rally around and allowed for an increased production of jobs. This reveals how the war aided in the end of the depression. The depression actually helped with initial wartime production as the industrial system had to be built from the ground up which was easier than complete reorganization. This in turn

When the US entered WWII, a lot of jobs were created since men were needed to serve in the military to fight in the war and in industries to build the guns, tanks, planes, and ships needed for war. While the New Deal provided some jobs, there wasn't a high enough demand for goods and services to cause businesses to truly increase employment. World War II provided the US with a large demand for military goods and services, which caused employment to increase.

Within a few months after the stock market collapse of October 1929, unemployment had catapulted from its status of a vague worry into the position of one of the country's foremost preoccupations. Unemployment increased steadily, with only a few temporary setbacks, from the fall of 1929 to the spring of 1933. Even a cursory reference to the several existing estimates of unemployment will amply show the rapidity with which unemployment established itself as an economic factor of the first order of importance.12

America’s Great Depression is believed as having begun in 1929 with the Stock Market crash, and ending in 1941 with America’s entry into World War II. In order to fully comprehend the repercussions and devastating effects of the Crash of 1929, it is important to examine the factors that contributed to the catastrophic event which led to The Great Depression. The Great Depression was the worst economic slump in U.S. history, and it spread to most of the industrialized world. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920s, and the

World War II brought difficulties in the economic side of things. When the war ended, reduction in the consumption meant that less jobs for the people. Additionally, Americans’ were unemployable because of jobs not being

Before World War I, the United States was in a period of isolationism, and a determination to stay out of European wars and affairs, while trying to maintain its status as one of the world’s biggest superpowers, militarily and economically (“United States Before”). America was just exiting the Gilded Age, which was an important time of growth and prosperity. Despite this, the American economy was in a small recession when entering the war, which was reversed by a 44 month period of growth caused by production for the war (NBER). This 44 month period helped the economy expand, and furthered the strength of the country. It also furthered the confidence of American businesses and the government which contributed to the attitude that caused overconfidence and helped to spread the Great Depression.

When the citizens had bought all that they could buy, there was a decrease in demand. Suddenly, the industries had an excess of goods and no one to sell it to. At this point, the Fordney-McCumber Act began to cripple the economy of America. Other nations introduced high tariffs to boost their revenue and to spite the United States. Sadly for the United States, these high tariffs and low demand were instrumental in the depression that America experienced. When the stock market crashed on October 29th, 1929 or “Black Tuesday”, the united states, along with other nations were in economic turmoil and the widespread prosperity of the 1920s ended abruptly. The depression threatened people's jobs, savings, and even their homes and farms. During the heart of the depression, over one-quarter of the American population was out of work. For many Americans, these were extremely hard times. When Roosevelt was voted into office, he introduced the New Deal. While this plan tried to help the united states out of it’s isolationist rut, the second world war was the final solution. Mobilizing the economy for world war finally cured the depression. Millions of men and women joined the armed forces, and even larger numbers went to work in well-paying defence jobs.

World War II is a great example of how war helped the US strengthen their economy because ending the policy of isolationism and joining the war ended the Depression. In the 1940’s, when the US was isolated from the rest of the world due to the Great Depression,

According to Aubrey Williams, the Assistant Works Progress Administrator and executive Director of the National Youth Administration, in March of 1933, unemployment was at an all time high in the US. She says, “the estimates had dropped to 12,000,000, and today most reliable sources place the number of jobless at 10,000,000” (Williams, 1935, para.13). This supports the argument that the New Deal was a success because the numbers show a great decrease in unemployment after FDR took office. This reduction in the amount of unemployed is progress for the United States because it means more people are getting off of government welfare and found a job with a secure