Great depression is perceived to be a dreadful attack on the
economy of USA in particular. Which drop the GDP of USA by 30% and meanwhile,
unemployment increased from 3% to 25%.
In august 1929, the economic activity was very well and
nearly it reached the peak in the mentioned year but in October 1929, the whole
stock market tumbled and the unfortunate decade started, and in 1933 the worst
condition of US economy was seen.
Now my discussion is: the World War II ended this great
depression very dramatically. When japan attacked on Pearl Harbor of USA, it
was very intolerable for American to become silent. Despite its economy was facing
very difficult barriers, the US economy was tending to build huge scale
armaments because US needs it. After the Pearl Harbor incident American fully
prepared for the war with the production of weapons, guns, ships and planes.
The demand thus increased and the production of these weaponry gave employment
to unemployed and the GDP of USA doubled between the war years (1939-1944) and
interestingly, the unemployment dropped more than before.
So eventually, the WWII was an angel for USA which brought
USA out of the great evil, the great depression. No monetary or fiscal tool was successful in this case and the only tool rather natural tool was WWII which played its role..
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