Which event brought the United States out of the Great Depression?

Which event brought the United States out of the Great Depression?

• A. World War II
• B. The New Deal
• C. Stock Market Crash
• D. Prohibition Repeal

Answer: (A)

The important idea here is that a massive, sustained boost in demand and production can pull an economy out of a deep downturn. World War II created that kind of surge: factories ramped up to supply weapons, ships, aircraft, and other goods, which required hiring large numbers of workers. With many people employed and paid, spending and investment rebounded, and government spending to support the war fueled even more activity. This rapid expansion of production and employment provided the decisive boost that ended the prolonged slump and set the stage for postwar prosperity. The New Deal did important relief and reform work that helped stabilize the economy and improve living conditions, but it was the wartime mobilization that delivered the sustained recovery. The stock market crash marked the downturn’s start, not its end, and Prohibition Repeal had only indirect, smaller effects on the overall recovery.

The important idea here is that a massive, sustained boost in demand and production can pull an economy out of a deep downturn. World War II created that kind of surge: factories ramped up to supply weapons, ships, aircraft, and other goods, which required hiring large numbers of workers. With many people employed and paid, spending and investment rebounded, and government spending to support the war fueled even more activity. This rapid expansion of production and employment provided the decisive boost that ended the prolonged slump and set the stage for postwar prosperity.

The New Deal did important relief and reform work that helped stabilize the economy and improve living conditions, but it was the wartime mobilization that delivered the sustained recovery. The stock market crash marked the downturn’s start, not its end, and Prohibition Repeal had only indirect, smaller effects on the overall recovery.