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      World War Two and the US economy

      Lesson details

      Learning outcome

      I can explain how the Second World War affected the American economy.

      Key learning points

      1. The USA joined the Second World War in December 1941.
      2. In the 1930s, Neutrality Acts had kept the USA out of foreign conflicts
      3. Cash and Carry and Lend Lease involved the US in supplying countries like Britain with wartime supplies.
      4. Rearmament led to growth in industrial and agricultural production.
      5. Rearmament led to a significant fall in American unemployment.

      Keywords

      • Neutrality - neutrality involves avoiding involvement in a conflict; this includes not doing anything to help those who are fighting

      • Lend Lease - Lend Lease was an American policy which involved supplying countries like Britain with wartime supplies free of charge

      • Arsenal - an arsenal is a building or place where weapons and military equipment are made or stored

      • Rearmament - rearmament is the process of supplying yourself or others with new weapons to rebuild military strength

      • GDP - GDP refers to the total value of goods and services produced by a country in a year

      Common misconception

      The economic impacts of wartime production were confined to weapons manufacturers.

      Wartime demand extended to a wide range of goods including weapons, foodstuffs, fuel and raw materials. This led to many sectors of the US economy benefitting from wartime production.

      Teacher tip

      Ask students to discuss the following questions in pairs: (1) how successful was the WPB at transforming the US economy into an 'arsenal of democracy'? (2) Who benefitted more from rearmament in the USA: foreign countries or Americans themselves?

      Content guidance

      Depiction or discussion of violence or suffering

      Depiction or discussion of violence or suffering

      Supervision

      Adult supervision recommended

      Licence

      This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0
      except where otherwise stated. See Oak's terms & conditions
      (Collection 2).

      Lesson video

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      Prior knowledge starter quiz

      6 Questions

      Q1.
      Write the missing word: The group of federal politicians responsible for passing laws in the USA are known as .

      Correct Answer: congress, Congress

      Q2.
      How many American households owned radios by 1940?

      22%
      52%
      82%

      Q3.
      Who broadcasted fireside chats using the radio?

      Charles Coughlin
      Duke Ellington
      Correct answer: Frankin D. Roosevelt
      Judy Garland

      Q4.
      Which group were targeted for employment by Federal Project Number One?

      Correct answer: artists
      builders
      farmers
      soldiers

      Q5.
      What were the impacts of American immigration quotas and tariffs?

      increased immigration and encouraged foreign tariffs in retaliation
      increased immigration and encouraged increased international trade
      Correct answer: reduced immigration and encouraged foreign tariffs in retaliation
      reduced immigration and encouraged increased international trade

      Q6.
      Starting with the earliest, sort the following events into chronological order.

      1 - World War One ends
      2 - Wal Street Crash
      3 - Great Depression spreads across the USA and the world
      4 - Hitler rises to power in Germany
      5 - WWII begins

      6 Questions

      Q1.
      involves avoiding involvement in a conflict; this includes not doing anything to help those who are fighting.

      Correct Answer: Neutrality, neutrality, Neutral, neutral

      Q2.
      Match the words with their definitions.

      Correct Answer:arsenal, building or place where military equipment is made or stored

      building or place where military equipment is made or stored

      Correct Answer:Rearmament ,the process of supplying yourself or others with new weapons

      the process of supplying yourself or others with new weapons

      Correct Answer:GDP,the total value of goods and services produced by a country in a year

      the total value of goods and services produced by a country in a year

      Q3.
      What is the name of the American policy which involved supplying countries like Britain with wartime supplies free of charge?

      Correct Answer: Lend Lease, The Lend Lease policy, the lend lease policy, lend lease

      Q4.
      Match the dates to the correct policy relating to America's involvement in WW2. Write the correct letter in each box.

      Correct Answer:1935-1936,Neutrality Act bans loans to countries at war

      Neutrality Act bans loans to countries at war

      Correct Answer:May 1937,Neutrality Act bans arms sales to countries at war

      Neutrality Act bans arms sales to countries at war

      Correct Answer:November 1939,‘Cash and carry’ allows arms sales to Britain and France

      ‘Cash and carry’ allows arms sales to Britain and France

      Correct Answer:March 1941,Lend Lease aid for Britain begins

      Lend Lease aid for Britain begins

      Q5.
      Which of the statements best describes the impact of WW2 on the American economy?

      Business profits rose during WW2 but wages stayed the same.
      Wages rose during WW2 but business profits stayed the same.
      Correct answer: Business profits and wages rose during WW2.

      Q6.
      Which new industry benefited most from preparations for an Allied offensive in July 1944?

      advertising
      food processing
      Correct answer: pharmaceuticals
      textiles

      To help you plan your 11 history lesson on: World War Two and the US economy, download all teaching resources for free and adapt to suit your pupils' needs...