How did the US get out of the Great Depression during WWII? If there was no money, how could the government start paying soldiers and factory workers?
In: Economics
The problem of the great depression was that no money was flowing through the system.
The New Deal opened up lines of debt where anxious wealthy people could put cash for it to be safe. It used that money to fund infrastructure, employ people, and pull the economy out of a tailspin. The plains were reforested enough to stop the Dust Bowl.
Then, WWII meant massive amounts of government spending on weapons and vehicles. That meant a lot of employed people. They bought things, which meant stable industries.
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