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Consequences That WW2 Had On United States Essay

¶ … consequences that WW2 had on United States society. The Banks

World War 2 had enormous consequences on many parts of American life. One of these was on the economy, and included in the economy was the result that the War had on the banks.

Admittedly, it wasn't just the War that impacted the banks; Franklin Delaney Roosevelt's New Deal had an inextricable impact too in enhancing the security of the banking system. Initially, involvement of commercial banks in securities underwriting under-cut bank stability. Roosevelt, therefore, implemented the Glass-Steagall Act of 1933 which separated between commercial and investment banking. Roosevelt also introduced Regulation Q, which forbade banks from paying interest on checking accounts and established a limit on interest rates paid to time deposits.

The post-World war booming era helped these new policies along. Some of Roosevelt's reforms persisted into he 21st century; other have instigated discussion and have been changed by, for instance, the Financial Services Modernization Act (Gramm-Leach-Bliley) of 1999 which blurred the previous strong demarcation between...

Net U.S. Banking History)
Relief for the unemployed

Most historians believe that it was WWII that ended the great Depression by its providing culminative relief for the unemployed. Economists too believe that it was Government spending on the war that was the defining act in bringing unemployment under control. (*9, 54-55). America's entry into the war brought the U.S. unemployment rate down below 10%, and War spending doubled the economic growth rate bringing an end to the Depression and, simultaneously, employing more people. Businessmen took advantage of liberal government contracts and doubted their outputs. Government and entrepreneurs ignored the massive national debt and heavy taxes and were more energetic in introducing innovation and launching businesses than ever before. (Americaslibrary.gov.).

The War had many effects on American society. These included: ending isolationism, quelling depression, providing unprecedented social and economic mobility, fostering national unity, and expanding the federal government. The U.S. government spent more than $300…

Sources used in this document:
References

Americaslibrary.gov. Depression & WWII.

http://www.americaslibrary.gov/cgi-bin/page.cgi/jb/wwii

Dull, Jonathan R. (1987). A Diplomatic History of the American Revolution. Yale University Press.

EH. Net U.S. Banking History http:/ / the.net/encyclopedia/article/grossman.banking.history.us.civil.war.wwii
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