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.
Because many manufactured goods were now being made interchangeably, the efficiency for manufacturing consumer goods was at an all-time high. Soon, the economies of scale technique was introduced and manufacturers were now able to figure out how much it cost per product depending on the supply, demand, and actual cost of the product. It was now much easier for innovators to focus on upgrading these products, instead of having to make them one by one. Once it was easier to upgrade machines, new
In the end, it was World War II that brought us out of the Great Depression. With war at hand, the government began pumping massive amounts of money into the economy. Production and inflation increased. More jobs were available and wages rose. At the
New technologies improved agricultural and industrial productivity. Growing cities provided markets and workers for industrial businesses. Products were allowed to reach distant markets because of improved railroad
The war clearly brought a return of prosperity after the dismal depression of the 1930s. It promoted the growth of big business and solidified military industrial links. It brought about permanent demographic change. For groups discriminated against in the past, the war was a vehicle for lasting social and economic gains. The war changed configurations of political power. Americans now looked to the federal government to deal with problems handled privately, or at a state or local level, before. Meanwhile, the presidency grew more powerful than it had ever been
The American economy flourished after World War I. The United States was involved in the war as part of the Allied Powers, and continued to have economic links with their allies, especially Great Britain. Their success in the war made it possible for American soldiers to return back home in 1919 to an economic boom (Baughman 197). Part of this economic boom was due to wartime production. During the war, the petroleum and steel industries were revived and new industries like plastic and rayon production were created. Additionally, more money was spent on technological advancements and making workers more productive, which led to higher wages and more disposable income (Feldmeth).
However, when the defeat of Japan and Germany occurred, it caused the termination of their cars being imported into the United States because their country was heading towards destruction. Baby boomers was another contributor to expanding the American economy. Baby boomers positively impacted our economy because previously there was a decrease in birth rates due to soldiers serving in World War II. Once the war ended, soldiers were able to come home to their wives, which lead to an increase of birth rates. Since more babies were being produced, there were bigger families being established. This caused the bigger families to relocate from a city based environment to a suburban home. This created more jobs because there needed to be workers to build these suburban homes. Since the population increased from the rapid growth of birth rate, it caused a demand for consumer goods. Industries saw the opportunity to produce specific. This caused the economy to expand because it created a massive upbringing of supply production that pertained to a certain crowd. The GI Bill was a law that gave aids to veterans after WWII. It
Due to increase in jobs and production that were necessary to keep the war going, the economy of the U.S. experienced a BOOM and lifted it out of the Great Depression. People had jobs and saved money. Now they could spend money on products not available during the war, like AUTOMOBILES.
The advancements in technology led to an easier everyday life. One example is the toaster. You don’t think about it much, pop in some bread, pop it out, done! Yet, back in the day you would have to hold bread over a fire a kitchen grill; therefore, making it so you can have toast wherever you have electricity. Another example would be cars. Imagine life without cars, having to walk everywhere, bike everywhere, or find some other way to get from point A to point B. It provided an easy and fast mode of transportation. With the Ford Model T and its amazingly low price made use of automobiles widely available; in fact, the amount of cars owned from 1900 to 1920 jumped
The technological progress had made changes in several areas starting to produce new type of machinery, meantime developing new methods of producing textile, source of energy, even to transmit messages on a long distances.
he Depression was ended and prosperity restored, by the fast reductions in spending, taxes and regulation at the end of World War II. Statistics showed a rise in GDP during the war. "But that just reflects misdefined statistical analysis. The military guns, tanks, ships, and planes produced and counted as showing rising GDP did not reflect improved standards of living for working people, or anyone else."4
Change is everywhere, the Second Industrial Revolution was an example of this change with an emphasis on technology between 1880-1914. During this time there was mass politics, steel, electricity, and chemicals creating a mass economy. Steel mills were most important, producing cheap steel fast, as well as an advantage to those who were preparing for war or any military advancement. Electricity was available to all, revolutionizing the work industry, homes, and changing the fuel factor where there was no longer coal being produced as much. Lastly chemicals, specifically chemical fertilizers which meant no more famines, larger crop yields, paper, plastics, and glass were all manufactured quick and cheap. Each of these were not only part of the
1b.1940- 1945 saw the economy of the nation at a very high government spending GDP at 43% and revenue at 20%, meaning the government was spending more money than it was making, this might be due to the great depression that followed the post war, slow economic growth, high unemployment but the government was spending on defense programs and weapons needed to keep the people and country safe. By 1950- 65 spending and revenue was about the same. Although productivity never returned to peak levels,
“Outline the differences between economic growth and economic development. Discuss how economic development may be measured. Outline how globalisation may impact upon a nation’s development. Where appropriate make reference to a relevant case study.”
People had more money, industrial revolution, the war, the post war recovery, airplane industry, in the 80’s