Friday, September 18, 2015

Did World War II help the US escape the Great Depression?

Not only did the Second World War enable the United States to manufacture itself out of the Great Depression, it enabled all the other countries of the world to do so as well.  When the war began, the US supported England, who by 1940 was the sole opposition to Germany, by supplying war materiel under a program known as "Lend-Lease."  Of course, as the US entered the war, the demand for materiel increased; not only did the US supply itself, Canada, England, and other remnants of the British Empire, but the Soviet Union as well.


The terms of the Versailles Treaty annihilated German war production; the Reparations demanded by the victorious allies at the conclusion of World War I destroyed the German economy.  While the US was enjoying the 1920's "boom,"  Germany was wracked with double-digit inflation and social upheaval.  By ignoring the Treaty, Germany began a rearmament program, which restored its economy, and consolidated the Fascist regime.  However, the problem with making war materiel, no matter whose side you're on, is that someone is bound to use it.

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