3.7 The Impact of the New Deals and WW2 on Economic Recovery

Question 1

How did the economic recovery from the Great Depression compare to previous panics?

Answer 1

It was very slow

Question 2

What year did the American get back to 1929 levels?

Answer 2

1937 after the interventionist policies of the New Deals

Question 3

What problems remained even after 1937?

Answer 3

Agriculture was still depressed and unemployment remained stubbornly high

Question 4

How did recovery change in mid 1938?

Answer 4

US hit by a ‘double dip recession’ as recovered faltered. This is often referred to as the ‘Roosevelt Recession.

Question 5

How did the Roosevelt Recession impact the US?

Answer 5

• Industrial production dropped back to the levels of 1934
• Unemployment jumped from 14% to 20%
• Consumer spending fell
• Cuts in production

Question 6

Why did WW2 lead to economic growth for the US?

Answer 6

• Required massive and rapid industrial expansion
• Millions of new jobs were created
• Motor industry switched from cars to the production of military vehicles and aircraft

Question 7

How many aircraft were produced per day by the middle of the war?

Answer 7

1000

Question 8

What did the War Production Board 1942 do?

Answer 8

Set up to supervise the allocation of strategic resources such as petrol, rubber, and steel

Question 9

What evidence is there that the economy had recovered as a result of WW2?

Answer 9

• New technologies introduced, increasing productivity
• Full employment
• Surge in the domestic economy leading to a consumer boom

Question 10

How successful were the New Deals in economic recovery?

Answer 10

Didn’t ensure complete recovery and it was the war that achieved this.