The End Of The Great Depression Summary

The End of the Great Depression In 1932, the United States economy experienced the least amount of cash flow in modern history. To end this horrible dip in the economy, President Franklin Roosevelt responded with a New Deal. The thousands of jobs created by the United States involvement in World War II is also said to have contributed to the return of the economy. It is often speculated upon whether the New Deals or the economic boom provided by WWII got the American economy out of the depressed state it was in during the 1930s. While Franklin Roosevelt is often accredited with the return of the United States economy through the implementation of his New Deals, World War II ultimately gave the American economy the momentum it needed to return to economic prosperity, through the development of big businesses and consumer spending. By 1932, during the presidency of Herbert Hoover, the number of unemployed workers had risen to about thirteen million. Civilians were surviving under extremely poor living conditions and many were stricken by famine. Industrial production had been cut more than half and in no year since the civil war had so few railroad tracks been laid. Hoover attempted to improve the unemployment rate but …show more content…
Robert Higgs, one of the economists that challenge this theory, claims that the value of world peace is questioned when the war is credited with the recovery of the economy. Economists that agree with Higgs would also claim that the war only brought the United States deeper into debt and delayed the recovery process. Though the national debt was increased through the spending on services needed during the war, it brought about the increase in international markets and strengthened overseas relationships, putting the United States economy ahead of others. The targeting of large industries during the war encouraged the regular flow of