Economic Effects Of War

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Throughout the entirety of the world and human civilization there has been war. General Ulysses S. Grant once said ”seek peace, but prepare for war”. From the beginning of the 19th century to the present day, the United States has been economically involved with multiple wars. The major economic effecting wars being our Civil War between the Union and Confederacy over slavery. World War one or " The great war" where the United States introduced a draft system drastically increasing the size of their army and the United States also came up with methods for creating jobs as an effort to try to diminish poverty. The next major war would end up being the sequel to World War one, World War two, this war is notoriously known as the war on Nazi Germany …show more content…
The Civil War lasted four years Starting on April 12th, 1961. Slavery was the main conflict of this war, the South used slaves on their cotton plantations because slaves were easy to come by and worked against their will for little-to-nothing. Because of slavery, Cotton was the leading export from the South and they were able to profit majorly from Europe because raw cotton was highly desired overseas. Knowing that the South 's economy was dependent on cotton, the North blockaded all of southern trading ports. Without access to trade, or banks and gold reserves in the north the confederates economy was broken and they turned to printing money which lead to inflation in the south. The north was far better off than the south but they still needed money. The United States Congress passed the Revenue Act of 1862 which implemented the first income tax and what we know now as the Internal Revenue Service. After the fighting between the states ended with the surrender of the south on May 9th, 1865, the United States entered a period of economic growth known as the "Gilded Age"(). During this time the United States rose to the world 's leader in industrial manufacturing. Even though the income of money in the United States grew, the distribution of money was very unequal with the wealthiest 1% claiming 51% of the nation 's income, while the bottom 44% having a measly 1% which lead to the early development of …show more content…
With the help of World War One the U.S. was able to crawl out of that recession. This began with mass exportation of purchased goods and munitions by Europe to aid with their war against Germany. When the United States entered the war in April of 1917 the focus of nation spending went to funding and building the military. The main source of military growth was the founding of our nation 's Selective Service System which required all males ages 21 to 30 to register for a period of military service of 12 months. With this draft in place and all the industrial jobs that were opened due to the war, America had unemployment rates reach below 2%. After World War One, which cost the United States an estimated $32 billion(), the United States continued to aid in Europe 's rebuilding. However this stopped in 1929 when the stock market in New York crashed and America entered the great depression. During the depression the United States achieved unemployment rates of over 20% and a decrease in Gross Domestic Product (GDP) by 15%. The aftermath of the depression was felt all through out most of the world until fighting started again and World War two erupted in

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