The Economic Conditions of 1949

During WWII, unemployment rates dropped significantly and GPN per capita increased. To one's surprise, the war actually helped stimulate the economy. The need for war/military materials such as vehicles, weapons, etc.. created the economic demand necessary to rebound from the Great Depression. There was a demand for American supplies/products such as foods and weapons. Europe also needed food, which provided an extra market for American farmers to sell to. However, Post WWII, unemployment rates started to slightly rise again and GPN per capita started to fall. This possibly led to the temporary and brief recession of 1949. It was a downturn in the United States lasting about 11 months. Most believe this short recession was caused by WWII, but according to C.A.Blyth, "the most important cause of 1948-1949 recession was substantial fall in the fixed investments." Whatever one may think, it is a fact: the U.S. economy grew throughout the 1940s.