PROMPT ATTACK
PROMPT ATTACK
Look at the information below which gives a bit more information about how the economy was organized during the war and the impact that this had on economic growth.
PROMPTS:
"Discuss the economic impact of the Second World War on the US home-front"
“Evaluate the social and economic impact of the Second World War on the United States up to 1945.”
“To what extent did the U.S. government mobilize the economy and population effectively for total war between 1941 and 1945?”
Industry
Mass production techniques were developed for fighter aircraft, aircraft carriers, merchant vessels, trucks and jeeps.
Government took control of industrial production.
Jan 42 War Production Board set up tasked with changing production priorities to the needs of the military. Silk ribbon factories now made silk parachutes, and car factories made tanks and planes.
The War Management Commission, 1942, recruited workers where they were needed most.
New industries were created particularly for synthetic materials such as rubber. There was research into improving weapons, such as radar and the atom bomb.
To keep industry profitable government contracts guaranteed profit and a triangle developed of military needs – government contracts – business production
By 1945 the US, with about 5% of the world’s population, was producing over 50% of the world’s manufactured goods.
Labor unions got increased membership. In 1941 they agreed to a no strike pledge with employers, to aid war production. The National War Labor Board [NWLB] banned closed shops.
In 1943, after strikes including in the mines, the War Labor Disputes Act enforced a 30-day cooling off period before a strike. NWLB was authorized to settle disputes.
Agriculture
Government encouraged ‘Victory gardens’ and canned excess product – ‘eat what you can and can what you can’t.’
Agriculture became more mechanized as farm workers were needed for fighting. Number of family run farms reduced as land bought up by co-operatives, or became part of large agribusiness units
In 1944, American farms produced 324 million more bushels of wheat and 477 million more bushels of corn than in 1939
Investment
War bonds were set up by government: financing the war and taking money out of circulation to hold down inflation. Bonds were loans from US public to the government. Bond posters appeared in 1941.
Hollywood stars promoted bond rallies and sporting events raised purchase of war bonds. 85 million US citizens had bought bonds by 1945
Men between the age of 18 and 45 were eligible for the military draft. Numbers paying federal income tax rose from 13 million to 60 million.
1943 Jan: President Roosevelt submitted his budget to the U.S. Congress. $100 billion of the $109 billion budget is identified with the war effort.
1944 June: In the U.S., President Roosevelt signed the Servicemen’s Readjustment Act to provide funds for housing and education after the war. It is better known as the GI Bill of Rights.
1945 Dec: The International Bank for Reconstruction and Development was created. Of the more than $7 billion contributed by 21 countries, the U.S. subscribed more than $3 billion to the World Bank.
Rationing & conservation
1942 May 15: Gasoline rationing went effect in the Eastern United States. Nationwide rationing started in September.
Whole population impacted by rationing of butter, meat, sugar and petrol. Campaigns to encourage self-reliance included: “Victory Garden,” (growing vegetables) cleaning one’s plate, or saving bacon grease. (Glycerin in recycled fat was used for ammunition and for some medicines.)
1943 April 1: Meat, fats, canned goods, and cheese were now all rationed. Attempting to stem inflation, President Roosevelt froze wages, salaries, and prices.
A speed restriction was introduced of 35mph to conserve fuel
1943 Feb 7th: Shoe rationing begun, limiting civilians to three pairs of leather shoes per year. (The ration in Britain was one pair per year.)
Federal government also set up the office of price administration to fix ceiling process on commodities, control rents and set up national rationing systems.
1942 Dec 1st: Coffee joined the list of rationed items.
1944 May 3rd: Meat rationing ended
1945 Nov 23: Butter rationing came to an end, and sugar was the only item still rationed
1945 Aug 19: rationing of gasoline and fuel oil ended