
Background
- The Second World War (1939–1945) reshaped the economies and foreign relations of the Americas.
- The war ended the Great Depression, boosted industrial growth, and expanded diplomatic cooperation within the hemisphere.
- Both the United States and Mexico experienced major economic and diplomatic transformations that influenced their postwar development.
Economic Effects: United States
- Wartime production created full employment and ended the Great Depression.
- The government established agencies such as the War Production Board to coordinate factories and resources.
- U.S. industrial output doubled between 1940 and 1945, turning the country into the “arsenal of democracy.”
- Massive defense spending laid the foundation for the military-industrial complex that dominated the postwar economy.
- Agricultural exports increased to feed Allied nations, and new technologies improved productivity.
- After 1945, the United States emerged as the world’s leading economic power, producing half of global manufacturing output.

War Production Board
- The War Production Board (WPB) was a U.S. government agency established during World War II to manage and coordinate industrial production for the war effort.
Diplomatic Effects: United States
- Wartime leadership positioned the U.S. at the center of the new liberal world order.
- Played a leading role in founding the United Nations (1945) and promoting international peace and cooperation.
- Strengthened hemispheric ties through the Good Neighbor Policy and Pan-American conferences, improving relations with Latin America.
- Relations with the Soviet Union quickly deteriorated after the war, marking the start of the Cold War.


