Question

What negative effects did World War 2 have on the economy of the United States? (3 paragraphs)

Answer 1

The U. S. engaged in World War II from 1941 until 1945. All the Allied and Axis nations were affected by this war, in both positive and negative ways. Americans recovered from World War I only to face another devastating and costly war with Germany during World War II. The war specifically impacted American society in multiple ways: social, political and economical.

Military Spending vs. Reforms- The U.S. government, despite being run primarily by progressive Democrats, suspended most economic and social reforms in favor of increasing defense expenditures. Antitrust legislation was virtually ignored during this period. Factories lengthened the typical work day to increase production, ignoring labor laws to do so. Businesses throughout the nation suffered from labor shortages due to men leaving to serve in the military

New Deal Funding Reduced- Congress took the opportunity provided by the war to cut funding to several New Deal agencies. Among the effected organizations were: the CCC (Civilian Conservation Corps), the WPA (Works Progress Administration) and the NYA (National Youth Administration). These organizations were intended to help disadvantaged groups who were typically discriminated against in the job market, including women and minorities. Therefore, these groups were most affected by the reductions in funding to these associations.

Corporate State- During the war, the U.S. government spent an average of $250 million dollars each day on government contracts. Two-thirds of these government contracts were awarded to the hundred largest corporations in the U.S. This act of favoring big business crippled many small businesses, causing a large majority of them to dissolve due to lack of trade. This, coupled with the slackening of antitrust law enforcement, succeeded in growing big businesses and enmeshing their interests with those of big government.

Taxation- World War II was the beginning of the U.S. personal income tax. In 1940 the personal income tax was extended to all working Americans, and the method of deduction from paychecks was instituted. This taxation was necessitated by the increase in government spending for the war effort. Hence, Americans felt the severity of the war.