economic history of world war ii

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Economic history of World War II Before war Before war there was the Great Depression, the United States dealt with it through the New Deal , which focused on the “3 Rs”: Relief of the unemployment!, Reco"er of the eco normal le"els! and Reform of the financial system in order to pre"ent a repetition depression# $his measures stren%thened the democracy# &or the United Kingdom the Great Depression meant the renouncement to the Gold Standard a monetary system in which the standard economic unit of account is 'ased )uantity of %old! and the economic pro'lems %a"e rise to radical mo"ements such as and fascist! who promised solutions# In Germany when the Nazis came to power the most pressing issue was the unemployment which they sol"ed they re%istered the most rapid decline in unemployment in any co the Great Depression! 'ut as unemployment decreased standards of lea"in% lan%uished E"entually this economic policy was supplemented 'y the 'oost to demand pro"ided 'y rearmament and swellin% military spendin% and *itler issued the &our+year plan whos to ma e Germany self+sufficient to fi%ht a war within four years while tryin% to mo partially free trade to economic self+sufficiency# -apan too ad"anta%e of the . st World War and ad"anced his economy, they loo ed at their e(pansion as a necessity 'ecause it ept forei%n states from 'loc in% -apan/s access materials and therefore their military force was seen as a necessity for defense . During the Great Depression Japanese economy suffered less than most industrialized nations # $heir industrial %rowth was %eared toward e(pandin% nation/s military power# In order to secure thei they started to occupy territories which %a"e them access to natural resources# Italy was in a wea ened condition after the .st World War and when Benito 0ussolini power he instated a new re%ime that had a %enerally laisse1+faire economic policy# was chan%ed, which meant that free trade was replaced 'y protectionism# fter Great Depression hit holdings of large !an"s were nationalized and a num!er of mi#ed entiti was formed # $heir aim was to satisfy 'oth the wishes of the %o"ernment and the wishe 'usiness, this was called corporatism# Due to 0ussolini/s am'itions of e(tendin% It influence they 'ecame in"ol"ed in the 2panish i"il War and also in"aded Ethiopia, military spendin% increased and Italy had the second hi%hest percenta%e of state+ow enterprises after the 2o"iet 4nion# &orthe So$iet Union thin%s were a 'it differently, they were only slightly affected !y the Great Depression and the impact of the crisis was that they turned from a rural to an indus society and they succeeded to !uild up hea$y industry at the cost of millions of li$e %roduction and la!or In most countries, production of consumer good was ended or greatly reduced and their economies 'ecame war+economies which meant that machinery, resources and la'or were manufacture war %oods# &he United States was !y far the most producti$e nation in the war , mostly 'ecause its industrial capacity was ne"er touched 'y the war# $o the opposit Germany's factories were destroyed and same thing happened with Japan.

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Economic history of World War IIBefore war Before war there was the Great Depression, the United States dealt with it through the New Deal, which focused on the 3 Rs: Relief (of the unemployment), Recover (of the economy to normal levels) and Reform (of the financial system in order to prevent a repetition of the depression. This measures strengthened the democracy.For the United Kingdom the Great Depression meant the renouncement to the Gold Standard (a monetary system in which the standard economic unit of account is based on a fixed quantity of gold) and the economic problems gave rise to radical movements (such as communist and fascist) who promised solutions.In Germany when the Nazis came to power the most pressing issue was the unemployment which they solved (they registered the most rapid decline in unemployment in any country during the Great Depression) but as unemployment decreased standards of leaving languished. Eventually this economic policy was supplemented by the boost to demand provided by rearmament and swelling military spending and Hitler issued the Four-year plan whose aim was to make Germany self-sufficient to fight a war within four years while trying to move away from partially free trade to economic self-sufficiency.Japan took advantage of the 1st World War and advanced his economy, they looked at their expansion as a necessity because it kept foreign states from blocking Japans access to raw materials and therefore their military force was seen as a necessity for defense. During the Great Depression Japanese economy suffered less than most industrialized nations. Their industrial growth was geared toward expanding nations military power. In order to secure their economic they started to occupy territories which gave them access to natural resources.Italy was in a weakened condition after the 1st World War and when Benito Mussolini came to power he instated a new regime that had a generally laissez-faire economic policy. This regime was changed, which meant that free trade was replaced by protectionism. After Great Depression hit holdings of large banks were nationalized and a number of mixed entities was formed. Their aim was to satisfy both the wishes of the government and the wishes of business, this was called corporatism. Due to Mussolinis ambitions of extending Italys foreign influence they became involved in the Spanish Civil War and also invaded Ethiopia, as a result military spending increased and Italy had the second highest percentage of state-owned enterprises after the Soviet Union.For the Soviet Union things were a bit differently, they were only slightly affected by the Great Depression and the impact of the crisis was that they turned from a rural to an industrial society and they succeeded to build up heavy industry at the cost of millions of lives. Production and labor In most countries, production of consumer good was ended or greatly reduced and their economies became war-economies which meant that machinery, resources and labor were used to manufacture war goods. The United States was by far the most productive nation in the war, mostly because its industrial capacity was never touched by the war. To the opposite side Germanys factories were destroyed and same thing happened with Japan. The war had caused shortage of labor in all countries. Britain had a successful record of mobilizing the home front in order to support the war effort, they did this by mobilizing women at home. Germany, on the other hand, decided to put slaves at work. In the United States skilled positions were opened for the black people and the rest of the countries encouraged retired people and children to work for factories and in farms.IndustryWhile at war, the industry of the countries were directed to war-production and it was difficult to produce for again for civil without causing unemployment, but mostly United States and the Soviet Union had to deal with this problem since in most of the countries industry was destroyed and after the war they needed plans and help to regain their power. Europe was divided between United States and the Soviet Union and while Western Europe received help from the United States through the Marshall Plan, Eastern Europe became sphere of influence of the Soviet Union. In Italy the ambition of business-men and the help were enough to make the North of Italy full of industrial cities. For Japan, who lost most of its colonies and its industrial cities, it was all seen as a new beginning and a way of gaining competitive advantage because they built new factories with modern equipment while others were still having old factories. Economies during and after warIn the first years of war United States stood aside and helped Soviet Union and United Kingdom with money, munition, food, meanwhile they produced everything they needed for war. While at war each and every country adopted a war-economy. For Italy this meant pressure from the business-man that provided money and for every country this meant a decreasing in the living standards. While being at war, the only ones that thought about what will happen after the war were the British, they came up with a Minister of Reconstruction whos aim was to think about was should be done for them to recover after war. They decided to handle three particular urgent needs: first, some easement of civilian living standards; secondly, some rebuilding of capital equipment; thirdly, some expansion of exports. Most economies collapsed after the war because they had to deal with the Great Depression, then with the war and they were left with almost nothing. Every country dealt in his own way with the after-war period and Japan, Germany, Italy experienced a miracle. After the war all that was left from the expanded economy of Japan was shortage, inflation and currency devaluation, what saved them was the decision to build new factories and the help from the United States, for Italy it was the help of the United States which made it possible and for West Germany the ideas of the economists made it possible, they adopted a new currency which had value and gave people incentive to work, it was initiated a central bank independent of the government and they also created a social welfare system. For the United Kingdom thing were differently, they accepted help from the United States but they adopted measures like increasing taxes, nationalizing industries and creating a welfare state with national health, pensions and social security. This measures lead to the most rapid growth United Kingdom had ever experienced.