How Did The Cold War Affect The Economy

Before World War II, the United States was experiencing a Great Depression. The economy was down and there was a high rate of unemployment. World War II helped America get out of that depression, it helped the economy go back up. The Cold War was the one to encourage industrial production. Because of it more military weapons were manufactured. Weapons like tanks, aircrafts, and missiles. All of the war productions helped the economy because of the high demand on military supplies. There were less items manufactured for the public, everything that was made was for the war. More people were now paying taxes that the government was using for all the military supplies needed. Spread of democracy was very important to the United States. They jumped in to help countries like Turkey and Greece to
But communism started expanding and NATO was created because of it. NATO created allies between America and other countries. If there was ever an attack to on the U.S, the other countries would jump in and help them.
When the men were returning from war, the GI Bill of Rights was passed. It provided veterans with government loans, and money to attend college. Most men returned to work, now that they were back employment rate was high. After being away from home, the vets wanted to settle down and have a family. The vets started their families creating a baby boom. Although the baby boom could be seen as a bad thing, it had a positive effect on the economy. It created a demand for baby clothes, food, daycares, and even bigger houses were needed for the growing families. The suburbs started filling up with families, everyone was looking for a big house to live in. This is when the era of consumerism began. There were new innovations coming out, and people were willing to buy them even if they weren’t needed. Everyone needed to