Does war cause a depression

Answer 1

That depends on several factors. War can soak up so many resources that the economy can not support it and collapses. This is especially true for the losing side. Further, the country in which the war is waged can suffer severe damage and destruction to its infrastructure and that can cause severe economic problems. On the other hand, if the war is waged outside a country's territory and the country is wealthy enough to afford it, then the demand for war goods can actually help the economy. For instance, in the Civil War, the South wound up bankrupt and badly depressed because of the physical destruction of the war and the vast expense of it which could not be recouped because they lost, the North on the other hand greatly expanded its factories and shipyards and mines, and then won the war, so they came out of it better off than before. Similarly in World War II, Germany and Japan had their economies smashed, quite literally, wheras the war was what pulled the United States out of the Great Depression. Michael Montagne

Answer 2

The great depression was started due to the fact of the fall of stock prices but the Depression had started very shortly after the end of The Great Depression. The Great depression had ended because of so many companies established by the United States to help the people.

Answer 3

The answer is no. You do not need a war to end a depression but it does help. When you battle other countries you can raise and obtain money faster.