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How did World War II influence the Spike in Manufacturing Industries?

The world saw a huge economic spike after the Second World War. The increase in technological advances, market demand, as well as global socio-political variables could even attribute to this. Mainly in the US, West Germany, France, Japan, and Italy, production has been increasing worldwide. Manufacturing production has increased.

Reason for War

The theories behind this prolific growth in a war-ravaged region is whether Europe’s catch-up growth was brought about by the end of the Second World War as well as the instability of previous decades. Because of the periods between First World War and Second World War, Europe would not have had time to implement many of the pioneering developments in the US and elsewhere.

Where Americans have developed new technologies, including such nylon as well as Teflon, and made significant progress in the automotive industries, numerous people in Europe still warm their residences with coal. The constant turmoil of its pre-war years essentially left a tiny time for progress on the continent. Then once the war had ended, the economies were newly able and willing to embrace all of these new developments and technology in industry and business.

People who have worked as soldiers as well as nursing staff in the battle now require jobs, and American progress in the last few years was the perfect idea for the use of this newly available workforce. These and other factors helped to increase Europe’s GDP well into the seventies.

Pre-War Situations

The world was experiencing depression before WWII. Throughout the US, the Great Depression increased to 25%, while other countries suffered.

This economic downturn had decided to leave factories vacant, which paved the way for the resurgence of manufacturing during and after the Second World War.

War Impacted Manufacturing

The US saw an unbelievable change in the aftermath of the war. A few of the contributing factors to production increases would include:

Increased Demand

The demand from companies to produce materials for the war doubled mostly during the war. Production was skyrocketed, the factories filled. The gross domestic product of the nation increased each year by about 8% between 1939 & 1944.

New Technologies Were Introduced

Mostly during the war, there were attempts to introduce as well as enhanced new industries including television, computers, commercial aircraft and such like. New production lines come from new technology, thereby increasing production levels.

More mechanized were other businesses. For example, agriculture has seen increased use of tractors, combined harvesters as well as different chemicals. New control technology has made production lines extra automated.

Redistribution of Wealth 

In order to allow public investment in the war effort, progressive tax rates have been tried to introduce in the course of the war. The government invested in various projects, including the inter-state road system in 1956, and this taxation system persisted just after the war came to an end.

Living Standard Increased

The growth of the middle class resulted in more straightforward access to new properties and technologies. People lived in increased ease, bought more products, and helped produce throughout the country.

Technology Impacted Globally

Of course, the impact of war goes far beyond the US. Many technological and manufacturing advances in the US also occurred in Japan and Europe, which led to an increase in industrial production.

Cooperation Between The Nation Increased

The rise in production cooperation between nations has also done help. European Coal & Steel Community was established by several countries, helping its members to cut prices and modernize.

The ECSC was the basis for the subsequent establishment of the UN.

Other Factors

Extra production factors involve: 

  • reduced oil prices to make the change from fossil fuels to coal easier
  • Financial repression, affecting rates of accessibility and interest
  • depopulation that has liberated resources as well as lowered commodity prices

Untold changes were made not only to Europe but also to the rest of the world in the Second World War. This period marked a cultural and economic change as well as the recovery from that change echoed to the present day.

Economically speaking, the period following the Second World War was a time for the exploration of new business models and technologies from its creative industries for destruction and then into the discovery industries for creative sake.

In Europe, the changes in the gross domestic product in the years immediately after the war are the most precise illustration of this change.

Impact on GDP

GDP is indeed a numerical metric measuring all fully completed products and services of a specific population, merely a small nation, or even the EU collection. The GDP is estimated by multiplying the total amount of all government, consumer, business as well as total import expenditure for that period of time, less total exports.

This metric is being used to evaluate many aspects of the economic health of a nation, including particular patterns of growth as well as living standards. The economy is understood to grow, unemployment tends to decrease, and export markets tend to rise in years, so if GDP is rising.

Economic Conditions Post-War 

Even during the period of war, American outcomes continued to grow, with only Hawaii and a number of foreign military bases being physically damaged. It permitted Americans, instead of having to concentrate on reconstructing what’s been lost, to work on strengthening the industry.

Conversely, in many European countries, infrastructure and buildings have suffered extensive damage, so that the end of the war had been a time of intense restoration.

Even so, a timeframe of expansive growth for Europe and other countries also started with the end of the war. The US, Japan, and Europe have made tremendous gains during the second half of the twentieth century. Here between the end of the war as well as 2000, Europe’s GDP has, in fact tripled. America was used to really being a global superpower with its post-war foundation.

So after the Second World War, the manufacturing industry has seen tremendous growth, and it will continue to grow at such a speed.


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