When the US joined World War I in 1917, Europe had been entrenched in the war for years. While the US had made some preparations for war, they were behind Europe's economy, which had been busy mobilizing troops, creating supplies, and inventing new war technologies.
The US immediately revved up their economy into third gear to get troops, ammunition, weapons, food, and everything else for the war effort shipped to the front lines in Europe. This was a massive undertaking, and it would need some organization. Enter the War Industries Board.
The War Industries Board (WIB) was a government agency created to ensure the United States could produce everything it needed for the war effort. The President at the time, Woodrow Wilson, issued an executive order to create the War Industries Board on May 28, 1918. The Board was up and running by that July. The Board consisted of twelve members, each from a different area of business.
Soldiers needed uniforms, shoes, guns, ammunition, gas masks, tanks, and ships. It was the job of the War Industries Board to ensure that the United States was able to produce enough of these products. Industrial production increased by 20% during the war, and most of these items were shipped to the front line.
The government essentially took control of the economy to ensure that they were able to be able to produce everything they needed to. The WIB controlled the pipeline of raw materials to ensure that the industries that were essential to the war effort were prioritized before the sectors that were not necessarily essential to the war.
The WIB also worked with companies to encourage their factories to stop making their usual goods and to shift over to making war supplies. Factories were also pushed to find ways to increase production while minimizing their waste. One way factories did this was through the mass production of standardized products.
The companies that the government worked with were private businesses, so they could raise the prices of items needed for the military and the general war effort. Therefore, another essential consideration for the WIB was ensuring costs stayed level. This would keep businesses from price gouging.