Many people believe World War II ended the Great Depression. Yes and No. Our industry demanded the government guarantee them significant profits if they switched to making weapons. The Federal Government would not guarantee profits. Therefore, those industries kept on producing many consumer goods including new cars throughout 1941 and into 1942. Meanwhile, Hitler’s forces overran Europe.
Fortunately, the government could use the last of President Roosevelt’s WPA funds to complete work on two aircraft carriers, including the Enterprise, that helped save the day at Coral Sea and Midway.
Not until months after Pearl Harbor did our government back down and guarantee profits. Only then did the business community seriously begin producing the weapons that won the war and ended the massive unemployment.
The psyche of our industrialists had been devastated by the Great Depression just like their workers.
Looking back, we now realize that all through the 1930s big business had the money but would not invest in our economy because they feared another financial collapse like 1929. That is why the Great Depression lasted 13 years until 1942.
The government agreement to guarantee profits finally ended the Great Depression.