Unemployment Rates in the United States, 1938–1945:
| Year | Unemployment Rate |
|---|---|
| 1938 | 19.0% |
| 1939 | 17.2% |
| 1940 | 14.6% |
| 1941 | 9.9% |
| 1942 | 4.7% |
| 1943 | 1.9% |
| 1944 | 1.2% |
| 1945 | 1.9% |
Source: U.S. Bureau of Labor Statistics
Which of the following historical developments best explains the trend in unemployment shown in the table?
- The mass mobilization of the industrial economy for military productionAnswer
- BThe complete and final economic recovery achieved by early New Deal reforms
- CThe implementation of laissez-faire policies that eliminated federal regulation of industry
- DThe growth of international trade following a shift away from interwar isolationism
Answer
The mass mobilization of the industrial economy for military production
The dramatic decline in unemployment from 19.0% in 1938 to 1.2% in 1944 was primarily caused by the massive industrial mobilization for World War II. The federal government directed billions of dollars into defense contracts, transforming factories for wartime production and drafting or enlisting millions of citizens into the armed forces, which quickly eliminated the surplus of labor left over from the Great Depression.
Step-by-Step Solution
Key Concept
The mobilization of the United States economy for World War II ended the Great Depression and led to full employment.
Estimated Time:45s