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So conservatives, which ended the Great Depression? The New Deal or WW2?
Or, to phrase it another way:
Was it a little higher government spending, a little higher taxation and a little more government influence in the market place OR
Was it massive government spending, high taxation and a virtual government take over of the private sector, including but not limited to price and wage controls. What to produce, how to produce it and how much of it to produce for what price.
Well?
14 Answers
- Anonymous1 decade agoFavorite Answer
Since the depression hit in October 1929, and the war started in December 1941, we can't attribute anything to ending the depression during those 12 long years.
Yet Obama insists on going down the same liberal road to nowhere.
- DeloresLv 45 years ago
It wasn't so much that the government spending in WW2 ended the depression. It was a combination of lots of things: - the government spending on military production created more jobs than just about all of the New Deal programs combined - additionally you had an incredible overseas demand for military products - we also drafted a large number of people out of the workforce and a decent number of them never came home, easing labor supply somewhat - after the war, a crap ton of things were broken in Europe and Asia, but the production capability of America was intact. This created an enormous export opportunity for the USA - like others above me pointed out, women entering the workforce and remaining there had a positive effect on the economy. The New Deal did help ease the effects of the depression's effects, but it really did take a global altering event (WWII) to really hammer the depression.
- Anonymous1 decade ago
America was moving slowly out of the recession before the war started, but the war increased the speed of recovery.
The main reason for that is because America needed guns, and steel for the military. The private sector was pretty much working for the government, oddly enough lol.
Ever since then though after America seen how profitable wars could be for the oligarchy we've virtually been in a armed conflict every single decade.
America's two biggest exports these days is inflation and foreign wars.
Source(s): Did anyone bother to look at WHERE all the growth under Bush took place? Because if you look closely all the growth came from private weapons developers, private military companies, and defense contractors. America used to export innovations and technology, but now if we're not in some type of war our economy goes to shit. Sad, sad times for America. - Anonymous1 decade ago
It was stimulus spending that ended the Great Depression. Everything from The New Deal to building Aircraft Carriers ended up being huge stimulus to the economy. It didn't mean the a war is the only thing that money could have been spent on to recover the economy.
You could just as easily send a person to Mars or stop global warming and advance humanity while at the same time produce jobs as you can invade a foreign nation while killing humans and making humanity suffer.
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- Anonymous1 decade ago
If you look at a chart, the GDP reached 1929 parity a couple of years before WW2, then there was a mini recession.. there's a great archival hand written chart you can look up in the CBO website.
- ?Lv 41 decade ago
WW II
That money didn't go to welfare bums, crackheads. There was no place for the rich to flee as anywhere else would be war and death so we could afford to tax them. Only like 15 people payed the max tax bracket. The government didn't take over industry as every one was working to help with the war.
Well Ammo and tanks have to be in regulation because our soldiers are using them. Price controls and wage controls were in place to combat inflation.
So Dims, you want to have another World War?
- Anonymous1 decade ago
The Big One, aka WWII ended the Depression. The massive influx of jobs, the draft, and taxation sealed the deal. FDR didn't really help that much at all. In fact, he probably lengthened the Depression.
- Anonymous1 decade ago
Um, WW2.
But it's not because of what you stated. WW2 gave virtually everyone jobs, but the people had no products to spend their extra money on due to rationing and stuff. When the war (and rationing) ended, people had plenty of money to spend on luxuries. Bam, no more recession.
- smsmith500Lv 71 decade ago
So you want total government control of the economy as an answer to the problems we have now? I don't think it will fly here, try Red china.
- ?Lv 61 decade ago
The New Deal extended the depression. Massive spending will not fix this one either.
Only the public sector can create jobs , thus bringing back the economy.