American Economy

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 The Gilder Lehrman Institute of American History, the years after World War II were often described as an “economic miracle.” The GNP was growing rapidly, and America was quickly on the page to becoming the richest country in the world. The average family also started bringing in a greater income for their

Two years earlier, America’s military preparedness was not that of a nation expecting to go to war. In 1939, the United States Army ranked thirty-ninth in the world, possessing a cavalry force of fifty thousand and using horses to pull the artillery. Many Americans — still trying to recover from the decade-long ordeal of the Great Depression — were reluctant to participate in the conflict that was spreading throughout Europe and Asia. President Roosevelt did what he could to coax a reluctant nation to focus its economic might on military preparedness. If the American military wasn’t yet equal to the Germans or the Japanese, American workers could build ships and planes faster than the enemy could sink them or shoot them

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.

For the United States the event of WWII was most likely the single largest factor in determining the nation’s financial, political, and social prowess in the 20th century. Where most have knowledge of the war itself, few understand the sheer reach it had and the massive effects it produced globally. At home, it ended the great depression and strengthened our government’s ability to manage the economy. Leading up to the war virtually all industry in the country was majorly crippled if not dead, a problem that may not have ever been fixed were it not for increased demands via the defense industries.

In the wake of the World War II, America emerged as an industrial superpower. The surge of

Post-World War I was a time for reevaluation: of alliances, of war tactics, and of what it meant to be a part of humanity. The so-called Great War left people around the world feeling exhausted, disgusted1, and yet stubborn in the desire for just compensation for their losses2. The United States found itself in a peculiar position born of Wilsonian neutrality ideals and immense war debts from the Allies; foreign policy decisions were entrenched in an internal battle between isolationists and internationalists3. While the 1920s are often said to have been dominated by the isolationists, perhaps American leadership through economic manipulation played larger role than it has been given credit4. The United States was not an isolationist nation after WWI, and its economic foreign policy decisions had global consequences.

President Franklin D. Roosevelt's’ New Deal plan had brought some form of aid towards a country filled with unemployment, inflation, and scarcity. He instituted the right for unions to organize and bargain jointly. Plus, he introduced the Fair Labor Standards Act of 1938 which established a mechanism for putting a restriction on wages and working hours. Additionally, the government raised taxes which helped pay for around half the war’s costs. The US government authorized a new use of military spending during the beginning of 1940. This spending gave the nation’s economy the boost it needed, which they used to boost the defense. This military spending helped millions of unemployed Americans find jobs by using them to make the weapons needed to protect the United States. It took more than 6,000 Americans to provide food, equipment, medical services, and transportation to 8,000

On December 7, 1941, with Japanese attack on Perl Harbor, all debate over avoiding war and the policy of American isolationism was gone. It was the beginning of a great war that brought death, devastation and finally the victory and power to United States. At the time of Roosevelt’s appointment in 1933, historically crucial events were taking place in Japan, Italy and Germany which had to shape the future and the fate of United States. This paper studies and analyses the major factors which contributed to American success both at home and abroad during WWII in addition to world’s view about American participation in war and bombings on Hiroshima and Nagasaki.

America has been an inseparable part of the world’s management, so its position directly determined the development of policies and cultures in many countries. Viewing the difficulties, which the whole world faced during World War II, one can see the choices that the USA had: the government could remain isolated from the rest of the world or join the crisis in order to solve it. As an important congress person, I see great perspectives for the country’s development from the side of economics and politics during and after the war. There are many factors, influencing the outcomes of the war in fields of international events, changes in people’s perception and policies.

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.

It can be argued convincingly that the United States emerged from World War I as the world superpower because of U.S intervention and President Woodrow Wilson’s diplomatic leadership. America had now become the ‘saviour of Europe.’ The United States left World War I with a major confidence boost. The war resulted in the death of empires, the birth of nations and in national boundaries being redrawn around the world. It ushered in prosperity for some countries while it brought economic depression to others. It influenced literature, changed culture and politics; social and economic climate was also impacted.

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

This recovery of the European and Japanese economies, and the advancement of industrial limit in the developing countries unavoidably diminished the share that United States had in world exports and output. By the 1970s, exchange examples reflecting fundamental similar point of interest had been restored, and the United States was at the end of the day a merchant of buyer products. The United States global speculation position soon after World War II was very small.

Aside from Pearl Harbor the mainland of the U.S. remained completely untouched (Timeline). During the war new life was breathed into the economy, factories were built to supply weapons causing employment to skyrocket (World War). As a result America was the only country that possessed an industrial system capable of supplying the tools necessary for rebuilding the world. Eisenhower began providing the countries left in shambles with aide manufactured by U.S. factories, establishing America as a global leader. Because of this aide and these country’s lack of industry a system of global economic dependence on the United States began. The U.S. also began to help redevelop the economies and systems of self-sufficiency within Western Germany, Japan, and Britain to help it combat the Soviet Union and its allies (BBC, History). All the while the profits of American corporations skyrocketed (Modern). By taking advantage of these countries in their state of weakness and their dependence on U.S. manufactured goods, America entered the “Golden Age of Capitalism” (Modern). With the war’s end started an upward trend for the west, with the United States at the helm, towards worldwide financial hegemony.