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How Did The New Deal Affect The Economy

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How Did The New Deal Affect The Economy
The Great Depression, which had an effect on economies on a global scale, was on of the catalysts to the start of World War II. With many countries struggling, Hitler managed to rise to power partially from his claims of the ability to change Germany into a great military and economic power. Across the ocean though, America was still mired down in the economic slump. President Roosevelt had enacted his New Deal economics and America seemed to be fighting back out of the depression, but it couldn't quite seem to get out. Despite the depression, when Germany invaded Poland in 1939, America was reasonably prepared for war thanks to programs and agencies set forth by the New Deal. The New Deal showed a larger and more active government in social and economic issues. When the war spread through Europe and Asia, it became clear to the American government that they needed to prepare themselves to strengthen allies and prepare for war. Conversion became one of the biggest issues in the early 40's. The government sought to convert industries over to war production, but many company executives fought the conversion for fear of losing consumer market shares to their competitors who weren't converting. Conversion was advocated by many public officials and labor leaders. The auto industry was converted over to aircraft …show more content…
The GNP had gone from $88.6 billion in 1939 to $135 billion in 1944. Employment also expanded at a terrific rate matching the industrial expansion. In 1944 the unemployment rate was only 1.2% of the work force. That is a record low, and as near to "full employment" as likely possible. It wasn't just those unemployed due to the depression that were finding jobs either. The percent of African Americans who held war jobs was eight percent which was very near the ten percent of the total population of the U.S. that they made up. 19 million women were working outside the home by

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