Tuesday, May 3, 2011

War Can Stimulate The Economy

War can also be good on the economy. It is not always a negative thing. At the end of World War II the United States had made their way out of the Great Depression and were experiencing strong economic growth. "The nation's gross national product rose from about $200,000 million in 1940 to $300,000 million in 1950 and to more than $500,00 million in 1960." This shows that during this time period there was a large amount of money circulating, which was mostly due to the government investing in the war. During the war the United States supplied other warring nations with war supplies and food. This helped fuel the war and our economy.

“The enormous volume of war time expenditures has led to great industrial activity throughout most of the world, and the huge profits resulting from the rising prices connected with the war in large degree buried the financial difficulties which the outbreak of the war occasioned”. (Anderson 15) Even though the war broke things, hurt the economies of other nations and damaged the economy, there is so much money that is being spent by the government and created by the war that for the winning country the development outweighs the economic disadvantages of the war. Some industries and some countries made a tremendous amount of money on war supplies and things that supported the war.

Anderson, Benjamin M. Effects of the War on Money, Credit and Banking in France and the United States,. New York [etc.: Oxford UP, 1919. Print.

http://economics.about.com/od/useconomichistory/a/post_war.htm

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