War's Effect On The American Economy
War has influenced economic history greatly across time and space. Wars have often influenced technological, social, and economical developments. Wars have exhausted wealth, interrupted markets, and depressed economic growth in the long term. Wars are pricey and destructive. Yet, wars are also seen as short term economic stimulators. It is obvious that wars lead to an increase in governmental spending on military. The way with which the government handles the necessity for more money is mainly done through borrowing, taxation, and bonds. By spending more dollars on military the government in effect “pumps up” the economy leading to a greater employment rate. Which puts more money into people’s pockets, therefore steading an economic upswing.
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Many men had to leave home to fight in the war which left many job vacancies. In order to fill these spots women were mixed into the workforce, which indirectly fueled another movement in the United States which was that of women’s rights. Another problem arose, how was the United States to pay for such a great expense? They began by pushing the sale of war bonds, you may recall hearing the term “Uncle Sam” which became an American icon for fueling the war. The citizens banded together and consumed less food by growing and consuming much of their food in their victory gardnes, as they were called. Around the onset of the Second World War the tax rates for some of the richest people in the States was around 90 percent of their income. Another way with which the United States paid for this War was through the printing of more money, in essence taking a loan out from itself. We never borrowed money from another country, we kept it at home and didn’t have any interest upon these said loans. It is concluded that the United States may have broken some important economic laws upon the entrance of World War II. They printed money which many said would lead to inflation, raised taxes which thought would have a negative effect on the living standard, and didn’t borrow from another country which was thought to be the easiest way. Ironically …show more content…
The Department of Defense was only allocated $1.4 trillion initially. Nearly this whole sum was borrowed money, leaving the U.S. in a lot of debt. This decision would include increased interest rates at home which will lead more citizens to not consider taking out loans which, in turn, decreases the amount of money created by the
Many men had to leave home to fight in the war which left many job vacancies. In order to fill these spots women were mixed into the workforce, which indirectly fueled another movement in the United States which was that of women’s rights. Another problem arose, how was the United States to pay for such a great expense? They began by pushing the sale of war bonds, you may recall hearing the term “Uncle Sam” which became an American icon for fueling the war. The citizens banded together and consumed less food by growing and consuming much of their food in their victory gardnes, as they were called. Around the onset of the Second World War the tax rates for some of the richest people in the States was around 90 percent of their income. Another way with which the United States paid for this War was through the printing of more money, in essence taking a loan out from itself. We never borrowed money from another country, we kept it at home and didn’t have any interest upon these said loans. It is concluded that the United States may have broken some important economic laws upon the entrance of World War II. They printed money which many said would lead to inflation, raised taxes which thought would have a negative effect on the living standard, and didn’t borrow from another country which was thought to be the easiest way. Ironically …show more content…
The Department of Defense was only allocated $1.4 trillion initially. Nearly this whole sum was borrowed money, leaving the U.S. in a lot of debt. This decision would include increased interest rates at home which will lead more citizens to not consider taking out loans which, in turn, decreases the amount of money created by the