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How was americas economy during world war 2?

Do you think economies are more likely to grow during wartime or peacetime?

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tammygutierrez7fff profile image
xmspsyqtaa profile image

Well, America's current economy profits from war. The government receives most of it's money from Federal Taxes which are basically paid to maintain, improve, and expand it's military. Governments have been taxing citizens for war sense the Chang Dynasty of 1700 AD. Peace is not profitable in the current economic system, the challenge is to develop an economic systems that values life, prosperity, and abundance. You are more valuable dead with million dollar insurance pay-outs and the selling of your orgins than you are alive; richness is measured in relationship to poverty, you get richer as people get poorer; and something is more valued if it is scarce i.e. diamonds, oil, etc. People need to realize that economies are human creations and can be outfitted to fit our evolved or desired needs.

qc6pz7mjaa profile image

Economies get a temporary shot in the arm during wartime as government spending boosts aggregate demand. So GDP is likely to increase, especially if the economy starts the war with lots of unused capacity, as the US had at the beginning of WWII.

In the long run, however, wars are descructive to economic health, as its resources and human capital are destroyed on the battlefield, which contracts the aggregate supply curve.