Effects of World War 2 on the American Economy

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  • Created by: Meg_
  • Created on: 07-06-13 15:26

Effect 1

When war broke out Roosevelt increased spending on defence.

Congress allows countries to purchase goods such as weapons on a cash and carry basis.

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Effect 2

Congress allowed the 'lend lease' programme which meant that the USA was supplying vast amounts of war materials to Britain.

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Effect 3

Between 1939 and 1941 the US economy seemed to be recovering because of the stimulus of war materials being ordered.

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Effect 4

By 1942 unemployment was at 0 and women joined the labour force.

By 1945 12 million men were in the armed forces.

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Effect 5

Between 1938 and 1944 America's gross national product doubled. 

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Effect 6

Industries expanded enourmously because of the war. 

This meant taking on laid off worked from northern industrial workers and encouraged the migration of 1.6 million people from the southern states. 

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