How Did Ww2 Contribute To Expanding The American 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.

In comparison to during WWII, the cold war played a major part in changing the basics of the economy and the government. The economy boomed due to the baby boom and the change in transportation in society. The government of the cold war was affected by events such as the civil rights movement and the red scare. The economy in WWII was solely booming due to the war, but during the cold war, it was pushed by poth post war industry and other reasons.

economy. For instance, one of the main things it did was pull the U.S. out of the Great Depression. The U.S. needed supplies for war and needed many soldiers to fight for them. Those needs were fulfilled by the massive amount of unemployed people in the Great Depression. Unemployed people signed up in the army and got work in factories producing war goods not just for the U.S. but for the other countries allied with the U.S. fighting in World War 2.

After the bombing at Pearl Harbor, America jumped right back in it, economy wise. As a result of the war, many jobs were created. Military forces needed weapons and uniforms along with soldiers. The only down side to the war starting for

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.

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.

After World War II, society experienced many changes due to economic growth. The reason for the rise in the economy is "… the developments in technology, methods of production, communication, and transportation..." (Background; lines 1-2). These changes "… led to far more goods and services for many people..." (Background; Lines 10-11).

After World War Two the American economy was on the rise due to the outcome of the war.

“The United States economy prospered during the war, factories became very efficient. They made weapons and turned out supplies for the war. After the fighting ended, the same factories began making peace time products.” (Corrigan 6) Before the war, many jobs were confined to either farms or handyman jobs. With the demand of wartime products such as guns, ammunition, and uniforms, factories provided americans with millions of jobs. Young, old, skilled, and unskilled, were working long hours in these factories; and they were working for little or no pay. As well as these factories providing jobs for Americans, they also provided jobs to the millions of immigrants, who also worked for little to no pay. Also due to the improvement of technology, came the invention of the assembly line which brought mass production and jobs. Washing machines, microwaves, radios, and automobiles were some of many of the new modern conveniences. “The rich became much richer during this decade, but many poor people did not benefit at all from the country's growth.” (Corrigan 6) The social classes stayed the same, this was a result of the new “American Dream”. The wealthy began to be driven by wealth and money. The two upper classes split into two: ones with new money, and those with old. Those with old money usually inherited it in the form of land, investments, or money. Ones with new money, were often very young and spent their money

The Second World War significantly bolstered U.S. production, with one prime example of this being how during and after World War II, manufacturing jobs increased by a steady .4% annually until 1979 (Ghanbari, 3). This increase of manufacturing jobs led to a significant increase in the amount of employed workers in the United States, which was sorely needed after the events of the Great Depression (which left approximately 25% of Americans unemployed.) A direct result of this unemployment is a massive decrease in the GDP of the country, or the Gross Domestic Product. One of the biggest issues faced during the Great Depression was that of unemployment. During the Great Depression and up until World War II, about 25% of all Americans were classified as unemployed, which goes hand in hand with the decrease of production that accompanied it.

Before and during the war our trade was severely interrupted and negatively affected which resulted in the need for Americans to rely on themselves to make many of the products they had previously depended on importation for. Because the States were no longer purchasing from other countries and paying high taxes, but buying and selling to their own people, the economy was lifted. Previous to the start of the War and all throughout, the economy was in sad shape. Due to the result of the war and uneasy ties with Britain, by doing business within itself America was lifted a little out of the huge hole which the War of 1812 and previous wars created.

World War II brought the US out of this period of slow growth. The military needed tanks, planes, guns, and everything else needed for the war effort. People were either back to work or overseas fighting. Production and growth rates reached new highs.

Ever wondered what their economy would be like if World War II never happened? Many things show that if World War II never happened America might not have ever gotten out the great depression that they were win before the war. It goes to show how strong America was when their people needed it the most at a time like this. Even though they ran into a trainwreck of problems during this time they still came out on top and helped America be shaped into what it is today. Who knows, maybe America would still be in the great depression today if they had never went to war. Therefore, the World war II economy has had the greatest impact on American society, because it has changed views on certain people or races, boosted them out of the Great Depression,

By the end of World War II, many people were afraid that the economy would fall back into a depressive state like the 1930’s. On the contrary, the period between 1945-1973 was one of fast economic growth, leading it to be called the “Golden Age” of capitalism. The United States, as well as many other countries, was experiencing this rapid growth that lead to a worldwide boom. There were many elements that played a role in sustaining this boom. The first was the vast demand for goods that was created by people having higher wages and desired to buy more things with the money they had. The second was the fact that because of the war new technologies and products emerged. For example the use of the airplane as use for mass travel sustained the boom, by the creation of a whole new tourism industry. Along with these forces behind the Golden Age boom was the enlarged role of the government. The government played a central role in directing the postwar economy. One of the most important efforts was the planning and construction of a national highway system. This boosted interstate commerce and transformed America into the “car culture” it is today. New Deal policies along with an overall much

Through ideas such as the Marshall plan and the GATT industrialized economies were able to flourish after World War II, with annual average growth rates hovering around 4-5%. A large part of this growth can be attributed to managed capitalism. To a smaller degree this growth can be attributed to the desire of the people to rebuild after the devastation that the war had brought them.