";s:4:"text";s:5931:" Definition and Summary of the Social Effects of the Great Depression Summary and Definition: The Social Effects of the Great Depression relate to things that affected people socially such as the way people lived, worked, their leisure time, how they related to one another, how they organized themselves to meet their basic needs and generally coped as members of society and in the community.
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World War II had a profound and multifaceted impact on the American economy. American industry had supported the Allied war effort, resulting in a massive influx of cash into the US economy. The growing size and influence of big business, big labor, and big farming gave clearer shape to the modern American political economy that had been emerging over the previous half century.So also did the larger size, power, and cost of the Less than half of federal spending was financed by taxation, but that required an enormous effort that profoundly and permanently changed the tax system. Keynesian analysis became increasingly central to economic theory and government policy, and the new tax system of the war years enabled government fiscal policy—taxes and spending—to be implemented more quickly and easily.Wartime prosperity had other political implications as well. The stock market crash on October 24, 1929, marked the beginning of the Great Depression in the United States. Civilian employment increased by eight million workers, to some fifty-four million, between 1939 and 1944, at the same time that the armed forces mushroomed from one-third of a million to 11.5 million. With the United States accounting for about 40 percent of all war goods produced worldwide by 1944, the GNP rose from $91 billion in 1939 to $126 billion in 1941, to $193 billion in 1943, and to $214 billion in 1945. The day became known as "Black Thursday," Many factors had led to that moment. It enacted and raised tariffs in 1921 and 1922 to bolster American industry and keep foreign products out.In the 1920s (the “Roaring Twenties”) many American consumers, assuming economic prosperity would continue indefinitely, took on large amounts of personal debt, sometimes at extremely high interest rates. In 1947, the United States produced about half of the world's manufactured goods, three-fifths of the world's oil and steel, and four-fifths of the world's automobiles. In 1929 as the Wall Street Crash led to a worldwide depression.
And for the first time, individual income taxes became a larger source of federal revenues than corporate taxes—another pattern that continued into the postwar era.But the greater part of wartime spending was financed by borrowing, through war bonds and other devices. It was triggered by a stock market crash in New York City in 1929, then soon spread beyond the United States, crippling the economies of dozens of nations.
When the war started, all that changed. The Great Depression also had a serious impact on an already xenophobic and exclusionary American immigration system. Many factors, including World War I and its aftermath, set the stage for this economic disaster.The Great Depression was a contributing factor to dire economic conditions in Weimar Germany which led in part to the rise of Adolf Hitler and the Nazi Party.Within the United States, the repercussions of the crash reinforced and even strengthened the existing restrictive American immigration policy.
By 1940, however, the war in Europe and the American national defense program provided economic stimulus, and in 1941 and 1942 defense spending and mobilization for war began to send the economy to new levels of prosperity.
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