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Great Depression

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Analyze how World War II pulled America out of the depths of the Great Depression.

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Solution Summary

How WWII pulled America out of the Great Depression is determined.

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Ending of the depression

The government began heavy military spending in 1940, and started drafting millions of young men that year; by 1945 16 million had entered service. But that was not enough to absorb all the unemployed. During the war the government subsidized wages through cost-plus contracts. That is a business was paid in full for its costs, with a percentage profit margin added on. That meant the more wages paid the better, as the government would cover them plus a percentage. In ...

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