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The Impact of the Second World War

Employment
Government spending on the military ended the depression
Unemployment fell from 9.5 million in 1939 to 670,000 in 1944

The Role of the Government
Abandoned traditional policies.
Took powers to control the economy centrally through organizations such as the War Production Board.
Ran up large debts to pay for the war.

National and personal wealth
The GNP doubled
The income of the average person doubled
Standard of living rose.

Agriculture
Farmers prospered again as a result of a guaranteed market provided by the armed forces and several years of good weather.

Big Business
Large corporations won large government contracts for military supplies and increased their profits.

Old Industries
Staple industries (coal, iron, steel, oil and ship building) boosted by demands of rearmament.