World War 2

David Calkins

Wars are good business, plain and simple. They create an immediate demand for a wide variety of materials needed by the government in order to fight the war. They create work opportunities for people that might not ordinarily be considered part of the normal work force. And, while not necessarily good for the soldiers engaged in the fighting, wars are always good for the businesses that provide the materials used in a war. World War 2 played a huge role on the American economy, which couldn't have came at a better time what with the Great Depression.One of the largest changes for America was that after the war it was the only one of the western allies whose economy had not been ruined by the war. This placed the U.S. Into a position of having a virtual monopoly on manufactured goods and agricultural exports that lasted for more than a decade, well into the 50's. While this raised the standard of living for Americans well beyond those living anywhere else, in the end it was a negative in many ways - labor wages for unionized industries grew so large that the US was placed into a non-competitive position by the early 60's. The decline continued during the seventies and eighties, with a corresponding decline in the US standard of living relative to the rest of the world.

After the war was over, many Americans felt that World War II and the subsequent drop in military spending might bring back the hard times of the Great Depression. However instead there was a huge consumer demand which fueld a very strong economic growth in the post war period. For instance the automobile industry was successfully able to get back to mass producing cars. Also new industries such as electronics and aviation began to emerge which began to bring America into a new age. There was also a housing boom that was added to the expansion stimulated along by easily affordable mortgages for returning members of the military. The nation's gross national product rose from about...