*
World War II --American economic revival 1940-41
World War II: American Economic Revival (1940-41))
Figure 1.--Here are two kids on a bicycle in Athena, Oregon in Depressuin era America (July 1941). They are probably Oakies who arrived in a beat up 1920s jalopy. The children are in decent condition because ghey are in a Farm Security Administration (FSA) mobile camp for migratory farm workers. During the Depression that was al the wotk availsbke, and often even thst was available. The FSA helped make the csmps livasble. Soviet propsganda Depression era photographs in their propaganda, but had to be selective as Sovirt citizens woukd not understand why the oppressed American workers had bikes, let aline cars. These camps emptied out almost over night adter the Jaoanese struckj Peark Harbor. The huge reservoir of unemployed workers and unused factories partly explains thenmassive increases in American war production. The ohotiographer was probably Russel Lee. Library of Contrss. FSA Colldection.
The United States lanuished in the Depression througout the 1930s. The New Deal ameliorated the human suffering as a result of the Depression, but it did not end it. Amazingly, many modern Democrats think that it did and use it to justify failed spending policies. Here historians and economists disagree as to why the Depression persisted so long in the United States, longer than in Europe. Perhaps the New Deal impeded necessary economic adjustments. Perhaps it was too concerned with balanced budgets. And perhaps President Roosevelt did not promote business enough. On the other hand, many industrialists saw the New Deal as shocking as thus as a result were unwilling to commit capital. Here there is no consensus. On one point historians and economists do agree--it was the War that finally began to bring America out of the Depression. War orders from Europe as well as American defense spending revilatalized the ecnomy. Workers had money again and spent. Corporations making cars and other consumer products like washing machines and refrigerators had their best years in 1940 and 41 since the 1929 Wall Street Crash. Cars had the time used maassive quantities of steel and chrome. A good example is the 1941 Buick. Thus we see cars using steel and other critical raw materials like copper and crome coming out of American factories at a time when the future of the world was being determined on the battlefields of Europe. Even so, the mobilizatioin of American industry through 1941 should not be overstated. Orders from Europe was niot going to enbd the Deopression. Fir the modt part only Britain and France were plscing orders nd after Frabnce fell only Britain. Lend Lease was importabt,m but by the end iof 1941 had just begun to kivl in. Throughout 1941 there contunued to be many unemnployed Americans, quite a number in migranht labor camps. Thgere were also unused or underurtilized factories. That only finally changed, and changed almost over night, after the Japanrse attcked Oearl Hsrbor (December 7, 1941).
