Question

How did the United States emerge as a global economic power after the Second World War?

Answer 1

After the end of the World War 2, United States of America experienced a phenomenal growth in its economy until the depression of 1970s due to extremely high consumer demand during the post-world war 2 period.

The war brought America return of prosperity, and after the war was over America became the world's richest country.

The GDP of USA jumped from $200 Thousand millions in 1940 to $500 thousand millions by the year 1960.

The growth was due to following major reasons -

The American industries was retooled during the war and it helped to meet the demand post war also.

The automobile industry was partially responsible, as the number of automobiles produced annually quadrupled between 1946 and 1955.

A housing boom occurred due to huge demand from the the returning servicemen from war.

The rise in defence spending by the US due to the Cold War also played its part.

After 1945 the major corporations in America grew even larger. New wave of mergers and acquisitions made new conglomerates. Big companies also started developing overseas where labour was cheaper.