WORLD-WAR-II FISCAL-POLICIES AND THE END OF THE GREAT-DEPRESSION

The United States economy completed its recovery from the Great Depres sion in 1942, restoring full-employment output in that year after 12 y ears of below-full-employment performance. Fiscal policies were not th e most important factor in the 1933 through 1940 phase of the recovery , but they became the most important factor after 1940, when the recov ery was less than half-complete. World War II fiscal policies were, th en, instrumental in the overall restoration of full-employment perform ance.