How Did Ww2 Affect The Us Economy

The U.S was affected by World War II in many ways. It affected the U.S economically, socially, and caused America to be established as a major world power. This war lead to accelerated major breakthroughs in science and a revolution of the tax structure previously put in place. It intensified the power of big business and sparked the mechanization of agriculture and agribusiness. It also vastly increased the amount of organized labor. Women became a very big part of the work force because men were out fighting the war. This played a large part in the advancements of women’s rights. They were severely needed in the workforce in order to make everything being used in the war effort and to compete in the arms race. The wartime economy even created
vast economic success that pulled the U.S out of the Great Depression. In all, World War II awakened the U.S, leading it to become one of the most powerful nations ever to exist in history.
Prior to the war, the U.S was trying hard to keep their isolationist policy. They held true to this until 1917, and after World War I there was a growing sense that the direct losses suffered during the war were for nothing. Principally, almost three fourths of an opinion poll conducted succeeding the first world war believed American involvement was a mistake. Americans wanted nothing to do with foreign affaires at this point. The U.S even opted to not join the League of Nations because they feared they would be dragged into any european conflicts. However, as the British and German conflict became bigger, the U.S saw benefits from revising the neutrality acts. In 1937, the U.S allowed foreign nations to buy goods other than finished arms by paying cash for them and shipping them on non-American ships. Even though this “cash and carry” provision expired in 1939, it was still the first step in bringing the U.S out of neutrality. In the years to come, war became inevitable. Germany was moving quickly and Great Britain and France were struggling. If they were taken over, the U.S would potentially have to take on Japan, Germany, and Italy on their own. As the U.S was on the brink of joining the allies, the Japanese attacked Pearl Harbor. This attack was only the second time in history Americans have been attacked on their own soil. This attack killed 2.403 Americans (Denman 2000). The U.S didn’t think twice about waging war on the axis powers. America Immediately joined the war, nixing their isolationist policy.
One major way the U.S was affected by World War II was economically. Previous to the war, the U.S had been enduring the Great Depression. The Great Depression lasted about ten years and was softened by President Franklin D. Roosevelt’s “New deal”. However, these steps taken were not enough to end the depression but the wartime economy, caused by World war II, brought it to an abrupt stop. In fact, the war created an economic boom in the U.S. Even in the 1940’s the unemployment rate stood at 14.6 percent; by 1944 however, it was down to only 1.6 percent. The reason for this economic shift was due to defense spending, war bonds, and mobilization. The government also revolutionized the tax system, making income tax a much larger portion of federal taxes than corporate tax. This allowed the government to fund th war efforts, but this tax reform is still in effect today. The United States accounted for an astounding 40 percent of all war goods produced worldwide. The U.S made a very large profit off of war goods by selling them to other allied countries and even putting into place the Lend-Lease act. This act was put into place when other countries ran out of money to buy war goods, so it allowed the U.S to lend goods to allied countries, as long as they payed the U.S back later on. America's income skyrocketed from $73 billion in 1939 to $183 billion in 1944. This economic prosperity in America was not common during the war. Other nation’s economies were damaged by the war. Some historians claim the U.S’s economic dominance was "the most influential consequence of the Second World War for the postwar world" (Jeffries 2004).
The war lead to a lot of new industries that contributed to economic growth, but these industries brought never before seen technological and science advancements.
Aviation and electronics grew in size and usefulness. The demands of the war not only generated new weapons but also new innovations in electronic intelligence and transportation. For example, radar and sonar was a new technology that became very useful during the war. Soldiers would watch the radar or sonar screen and send planes or ships to intercept oncoming enemies. Another major technological advancement that came as a result of World War II was the first atom bomb. A race took place against the Soviet Union called “The Arms Race” in which the U.S raced to create an atomic bomb in secret. Using newly discovered science, the United States underwent “The Manhattan Project”, that lead to the creation of a bomb that could cause devastation never seen before with any weapon (The 1940’s Science and Technology: Overview 2001). This bomb affected the U.S and the world forever. A weapon of this caliber caused many people to oppose it on moral grounds. Others thought it was necessary for protection. After the U.S dropped two on Japanese civilians, there was a lot of controversy. These bombs combined killed 109,000 instantly. The radiation killed another 200,000 by the end of the year. Other countries feared this power and scrambled to create atomic weapons of their own. To this day, countries attempt to have the most
powerful nuclear weapons in order to protect themselves. So, this bomb affects America and the world to this day.
Many women played critical roles in the arms race.
Men were drafted into the war so women took their place in the workforce. The work behind The Manhattan Project was largely performed by women. Even a good majority of the physicists working on this new technology were women. Furthermore, this was the first time women took this big of a rule in work that caused this type of labor. This played a great deal in the advancement of women. Women in America came together and played a very pivotal part in the war even though they were mostly not abroad. When men came back from the war, there was conflicts about who rightfully had certain jobs. Women believed they should not have to leave the jobs they were doing and men thought they should get their own jobs back. Even though men took over the majority of the workforce when they returned to the U.S, people’s perspective of women’s working ability changed (American Women In World War II 2010). Many saw them as much more capable, therefore advancing women and leading them closer to equality. They were able to get jobs easier because people saw the jobs they did during the
war.
Another group that was advanced during the war was African Americans. During World war I, less than 4,000 African Americans served in the military. Going into World war II, the National Association for the Advancement of Colored People urged FDR to draft more African Americans. By 1945, 1.2 million African Americans served in the U.S military at home or abroad. During the war barracks were segregated. However, when U.S troops were fighting they fought alongside other races. Many believed it was wrong to be fighting racism across the ocean while many were experiencing racism in America. Riots, sit-ins, and and racial tensions increased because of this issue. As a result of the black’s war effort many saw the segregation as unfair which lead to desegregation of barracks.This was a huge advancement for colored people because it gave them a chance to prove their loyalties, which improved their status in society (African Americans in World War II 2014). Japanese-Americans were also treated very unfairly because many had prejudice toward them as a result of the U.S fighting Japan in the pacific and their attack on Pearl Harbor. Many Japanese people were suspected to be spies so Japanese-Americans were moved into internment camps and forced to stay their for the duration of the war. Similar to how the the U.S was sympathetic to blacks after the war, the U.S later formally apologized to the Japanese and paid each affected by the mistreatment during the war $20 thousand.
After the war, the United States emerged as a very powerful, major world power. The U.S was experiencing prosperity on levels they have never seen. The economy was thriving while other nations economy was trying to recover. The creation and use of the atom bomb proved them capable of mass destruction. This struck fear into Japan and made them surrender at the hands of America. The U.S had influenced the war in such a way, other countries had not been aware of the sheer capabilities of America. Another reason the U.S emerged as more powerful than other nations, is due to the fact that America had no infrastructures destroyed during the war, besides the base in Pearl Harbor. This allowed the U.S to profit on the war during the time other countries had to put money into rebuilding cities and buildings. Lastly, the amount of military equipment produced during the war was extraordinarily large. There was plenty of leftover military power, equipping the U.S with a vast amount of weaponry and new technologies that were able to be saved for the future. In conclusion, The U.S was largely affected by World War II. It affected the U.S in ways economically, politically, socially, technology wise, and changed the way Americans view war. World War II is what caused America to become arguably the most powerful nation in the world.