How did military preparations in 1940 and 1941 end the Depression?
1 Answer
Mar 26, 2017
The massive increase in military spending led to a recovery of the economic activity
Explanation:
In the thirties, the economy activity got into a slump. It was the worst economic crisis the country had ever known. WWII required such governement intervention that it led to a temporary "end" of the depression.
This is why Randolph Bourne said(regarding WWI, not WWII) "War is the health of the state". Libertarians would criticize this point of view(just like the Old Right) claiming that the recovery was only temporary. According to them only the post-war development of consumer's society put an end to WWII. Keynesians(who favor state intervention) tend to disagree.
