Economic Effects of the Second World War
- Created by: Grace Lidgett
- Created on: 09-04-13 10:50
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- Economic Effects of the Second World War
- Before the war
- Compared to the other leading countries, the us army was relatively small and had a lower expenditure too
- In 1937, the USA spent only 1.5% of its income on defence compared to over 20% in Germany, Japan and USSR
- Before the war
- Compared to the other leading countries, the us army was relatively small and had a lower expenditure too
- In 1937, the USA spent only 1.5% of its income on defence compared to over 20% in Germany, Japan and USSR
- In 1937, the USA spent only 1.5% of its income on defence compared to over 20% in Germany, Japan and USSR
- In the presidential election of 1940, Roosevelt made it very clear he did not want to send 'our boys' to another war but could not stand back in this international situation
- Compared to the other leading countries, the us army was relatively small and had a lower expenditure too
- Before the war
- In 1937, the USA spent only 1.5% of its income on defence compared to over 20% in Germany, Japan and USSR
- In the presidential election of 1940, Roosevelt made it very clear he did not want to send 'our boys' to another war but could not stand back in this international situation
- Compared to the other leading countries, the us army was relatively small and had a lower expenditure too
- The Neutrality Acts
- The Neutrality Acts of 1935 and 1937 forbid the sale of war materials (major obstacle to aid Britain and France)
- There were modified in 1939 (with great difficulty on Roosevelt's part) which allowed any nation to buy arms but on a cash/carry basis, with no loans and goods to be carried by british ships
- This was an important first step and huge orders were placed by Britain and France (which helped revive US economy)
- America's involvement in war production made the New Deal irrelevant
- Statistics
- By 1941 unemployment was still around 14%, by 1943 it was 2%
- GNP grew from $91 billion to $214 billion by 1945
- Although prices rose by 28%, average wages rose by 40%
- Farm income grew by 250%
- Consumer goods being purchased rose by 12% from 1940-44 (Britain's decreased by 22%)
- The USA was the ONLY country to see an increase in war production and consumer goods
- The USA created an army of 1 million men, doubled their already large navy and increased air force to 7,800
- By 1944 alone, 6.5 million women entered the work force and by the end of the war, 60% of all women were employed
- Before the war
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