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olga_2 [115]
3 years ago
8

What problems arose in Harding’s cabinet

History
1 answer:
DENIUS [597]3 years ago
6 0
Limited business affair control through the government and social reform
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With the surrender of both Germany and Japan in 1945, military contracts were terminated and soldiers returned home to compete with civilians for work. As government spending depleted, the economy fell into a deep recession and GDP shrank by a whopping 11 percent.

The private sector was booming when the government stopped buying ammunition and hiring soldiers. The factory that used to make bombs made toasters, and toaster sales surged. On paper, measured GDP declined after the war. In 1947 it was 13% lower than in 1944.

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