Economic Effects of the Second World War

HideShow resource information
View mindmap
  • 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 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
        • 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
      • 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

    Comments

    No comments have yet been made

    Similar History resources:

    See all History resources »See all resources »