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I have read that the US economy was already essentially recovering by 1938. The US involvement in the war didn't happen until 1941. I think that the depression would have ended even if the war didn't happen. (Though the recovery might not have been as quick.)
It was World War II. Prior to Pearl Harbor there was still an umemployment rate of over 15%.
I don't know whether or not the New Deal would have solved the depression .... maybe yes; maybe no.
Since the war created a vast number of new jobs and got money flowing again, the economy rebounded much more quickly.
The war also drew women into the labor market on an unprecedented scale.
WWII united the country because we had a common goal to win the war -- we had to produce a vast military machine and one result was a real industrial surge.
The "New Deal" resulted in government created jobs to improve our infrastructure -- e.g. TVA, road building, bridge building, etc.
Both of them got us out of the Great Depression.
Without question WWII. The new deal initiatives had an effect but the war spending is what kick the economy into overdrive back then. Plus the rallying cry of a war lifted the spirits of a country that had been beat into the ground by years of depression, turned a big negative into a national cause.
The money made from supplying Europe as it build up for WWII is what brought the economy out of the depression. The New Deal helped as well but I suspect that its effects were mostly psychological in nature.
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You're reading Would you say it was WWII that pulled America out of the Great Depression, the New Deal or both?
Comments
exactly +6 thankyou Cynthia
by Sodapop on December 14th, 2008
But that depends on your definition of recovering. Yes, it was improving, but some people claim that if the more meaningless jobs created by the New Deal were removed it would have suffered again. The New Deal looked great, but it was giving a lot of money away and not kickstarting the economy
by Beany on December 15th, 2008
you have to give some to get some which i think it did in the end, partially because of the war. pump-priming.
by Sodapop on December 15th, 2008
I am not sure if the New Deal programs really contributed to the recovery either. From what I have read and learned in school, it may have been a recovery of confidence more than anything else. People were starting to have faith in the banks again and the jobs began to return (partially because of the buildup for the war in Europe, but mostly before the war really began).
by cynthia on December 15th, 2008