The Impact of the War Economy on the USA Flashcards
1
Q
Impact on the USA itself
A
- National Debt - 1941: $41 billion 1945: $260 billion.
- War bonds introduced to pay for the war - contributed 50% to the war effort.
- Taxes increased - 94% for those earning above $200,000.
- Greater employment: Taxpayers increased from 7 million to 42 million (1944).
- New industries: Synthetic rubber and medicines (penicillin).
- 60 companies were funded by the govt to produce penicillin.
2
Q
Impact on the workforce
A
- Unemployment: 1944 = 1.2%
- 15 million servicemen/women called up
- 6.5 million women at work
- 66% of teenage boys working
- Average wages increased by 40% (prices rose by 28%)
- Average weekly wages: $24 –> $44.
3
Q
Impact on Government control of the economy - 1941
Increased
A
- Jan 1941 War Production Board: Supervised output of $183 billion worth of weapons and supplies. Allocated resources and coordinated the change from civilian to war production.
- Aug 1941 Office of Price Administration and Civilian Supply: Control inflation.
4
Q
Impact on Government control of the economy - 1942
Increased
A
- Jan 1942 National War Labour Board: Tried to stop wages rising too far above 15%.
- March 1942: Government freeze prices - roughly 90% of food under price controls.
- Oct 1942 Office of Economic Stabilization: Continued the monitoring of wages and prices.
5
Q
Impact on Government control of the economy - 1943
Increased
A
1943 Office of War Mobilisation: Rationed meat, sugar, and petrol. Also stopped production of non-essential items (eg cars.)
6
Q
Impact on Industrial Relations
A
- No strike agreements with two major union:
- American Federation of Labour (AFL)
- Congress of Industrial Organisations (CIO)
- Union membership grew to 14.75 million.
- Many short stoppages - 14,471 strikes during the war and nearly 7 million workers claiming that conditions were unfair.
- 1943: 12 week strike featuring 400,000 coal miners.
