The economic expansion during the New Deal was primarily influenced by what factor?

The economic expansion during the New Deal was primarily influenced by the investment in higher education for WWII veterans, particularly through the GI Bill, which significantly contributed to post-war economic growth. This legislation provided financial assistance for veterans to attend college, acquire vocational training, and secure housing, which empowered millions to gain higher education.

This increase in educational attainment directly correlated with greater skills among the workforce, thus boosting productivity and innovation. The GI Bill not only increased access to education but also stimulated consumer demand as veterans entered the job market with higher purchasing power. As educated veterans secured better jobs, they contributed to the overall economic expansion that characterized the post-war period, making this investment a key factor in the New Deal’s lasting impact on the economy.

In contrast, while higher taxes on the wealthy, reduction of federal programs, and international trade agreements could have various effects on the economy, they did not play the pivotal role that the investment in education for veterans did in terms of facilitating a broad-based economic recovery and expansion during and after the New Deal era.