How did World War 2 affect the European economy?

Answer 1

1. In the approach to WWII Germany, France, Britain and the Soviet Union (and some other countries) greatly increased spending on armaments. In addition, Germany built a strategic road network and invested vast sums in order to produce oil from coal and making synthetic rubber and other substitutes.

2. During WWII most of Europe came under German control and the economies of both Germany and occupied countries were geared to the war. The economies of Britain and the Soviet Union were also very closely harnessed to the war effort.

3. After the war, much of continental Europe was very badly damaged. Perhaps most serious of all was the damage to the communications infrastructure, especially the rail and road networks. This was most important, as it meant that it was difficult to move even essential goods around in many areas. The British economy was utterly exhausted. Throughout the countries that had fought in WWII there was widespread and often severe inflation. Rationing and the absence of many luxury good during the war had forced people to save, but now there was very little to spend the savings on ... Most European countries borrowed very heavily, mainly from the U.S. Towards the end of WWII there were fears that Western Europe would become Communist. In many countries, especially Britain and France, there was a sharp swing to the Left.

The war was followed by a very long boom, which lasted with minor hiccups till 1973 and led to rapid recovery from the ravages of WWII.

or

the marshall plan lent more money then COMECON did.