The Economic History of the Period of 1930 to 1980 Free Essay Example, 1750 words

When World War 2 started in 1939 USA had not recovered from the onslaught of the great depression of the 1930s. It was only from 1936 that the GDP of the USA started recovering gradually. Hence the role of government was not minimized. As war spread throughout Europe and Asia between 1939 and 1941, the role of the federal government's leadership was important in the realm of "preparedness" for war and fighting the war. Great importance was given for converting America's industrial base to produce armaments and another war materiel rather than civilian goods. "Conversion" was the key issue in American economic life in 1940-1942. The major automakers were made to convert to aircraft production. The shipbuilding industry that was languishing for years was made to revive to gear to the war needs. As a result of the conversion between 1941 and 1945, the U. S. exported about $32.5 billion worth of goods through Lend-Lease. War boom and a new wave of growth and prosperity began in the US. This was the result of the rail and road expansion in Northern Europe and America and the accompanying expansion in the coal and iron industries. We will write a custom essay sample on The Economic History of the Period of 1930 to 1980 or any topic specifically for you Only $17.96 $11.86/pageorder now The boom ended approximately in 1857 when it turned into a recession. By 1946 Government had transferred payment to welfare programs to extent of $11 billion. By 1950 this has risen to $15 billion, by 1970 this has risen to $28 billion and by 1980 by $80 billion. Farmers made $20 billion in 1944 unlike the late 1930s, which had an average of only $8 billion. The war also caused a shortage of employees. This raised the annual earnings to $44 billion compared to $13 billion in 1939. At the wartime peak in July 1944, 19 million women were employed. Child labor increased over two folds. Because of these factors, the average family income rose over 25% from 1941-1945. 1941, the national income was around $95 billion dollars in 1946 the Employment Act was passed that enabled the US government to use the tool to stabilize output and employment.