The federal government significantly increased in size, scope, and power when the United States entered the Great War.
The ocean shipping industry was practically made a state industry.The railroad, telephone, domestic telegraph, and international telegraphic cable industries were all nationalized.The war had a wide range of and far-reaching effects.The depression itself came to an abrupt end with the war.After the war, the federal government was a powerful economic actor that could control the economy in part through spending and consumption and regulate economic activity.
By establishing the military power of the United States and signaling to the axis powers that it was a global power, World War II contributed to its influence;This posed a significant threat to Germany, Japan, Italy, and the Axis powers.The war had the positive effect of creating new jobs for the military's unemployed personnel.The war had negative consequences;One million people died in the war.
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