Second World War Flashcards
How did increased military spending create prosperity during the war?
1944 - $90 billion on military spending.
US GNP rose from $91 billion in 1939 to $214 billion by 1945.
Brought about full employment and growing affluence - by 1942, unemployment had disappeared.
How did manufacturing create prosperity during the war?
Production of Liberty ships used assembly lines using advanced welding techniques, creating employment.
Ford shut down vehicle production to dedicate its resources to the war effort, creating the worlds largest air craft factory - assembly line was 1,600 metres, more employment.
Creating more aircrafts, warships, army trucks and navy vessels than the axis powers combined - production increased when USA started helping Russia.
What were victory gardens?
People were growing their own produce.
Accounted for 40% of vegetables consumed in the US.
How did agriculture create prosperity during the war?
Spam - 15 million cans each week, 1.6 million pigs used.
Lend Lease Act bought surplus to ship to European countries.
Only country in full agricultural production.
Need for food increased when US entered the war, farmers encouraged to produce more.
How did farm income increase during the war?
By 1941 farm income was higher than it had been since 1929.
Farm income rose by 250%.
Net income from $4.4 billion to $12.5 billion by 1945.
What did the Neutrality Act do?
Allowed arms trade with belligerent nations on a “cash and carry” basis, meaning that they would sell supplies and materials as long as the recipients arranged for the transport and paid immediately in cash.
What did the Lend-Lease Act?
It was a program under which the US supplied allied nations with material between 1941 and 1945.
A total of $50.1 billion worth of supplies was shipped, 17% of the total war expenditures of the US.
The terms of the agreement provided that the material was to be used until time for their return or destruction, but in practice very little of the equipment was returned.
In 1943-44, about a quarter of all British munitions came through Lend-Lease.
Aircraft compromises a quarter of the shipments to Britain, followed by food, land-vehicles and ships.
What did the War Powers Act do?
Authorised the president to recognise the executive branch, independent government agencies and government corporations for the war cause.
The president was allowed to censor mail and other forms of communication between the US and foreign countries.
What did the Office of Price Administration do?
It’s function was to control money and rents after the outbreak of the war.
What did the Servicemen’s Readjustment Act do?
Provided a number of benefits including low-cost mortgages, low-interest loans to start a business, cash payments of tuition and living expenses to attend college, school or vocational education and one year of unemployment compensation, available to every veteran.
By 1956 roughly 2 million veterans had used the GI Bill education benefits and 6.6 million had used the benefits for some kind of training.
How did the automobile create prosperity after the war?
Accounted for a sixth of the work force.
Continued to grow due to good Union relationships.
1945 - 69,000 cars sold
1955 - 7.9 million cars sold
How did technology create prosperity after the war?
High levels of investment into technology.
1952 $255 million on chewing gum, $23 million on mouthwash.
Affordable refrigeration.
TVA - cheap electricity.
Sale of household items up by 5 times.
US had 7% of the worlds population but made 50% of all manufactured goods and 43% of the worlds electricity.
How did unions create prosperity after the war?
Taft Hartley Act curbed power of unions.
Encouraged unions and employers to work more sensibly together.
United automobile workers & GM given job security & high wages in exchange for no strikes.
What did the Taft Hartley Act do?
Amended the Wagner Act.
Made closed shop and secondary picketing illegal, and unions had to give 60 days notice before a strike and bad to make their financial statements public.
Encouraged unions and employers to work more sensibly together, for example, in the case of GM and the Union of United Automobile Workers, job security and higher wages were promised in exchange for a no strike rule.
How did the baby boom create prosperity?
Stimulated baby related industries.
Each baby worth $800 to producers.
