The war and the economy (T3) Flashcards
How did war production affect the new deal?
It made the new deal irrelevant as demand for jobs in war production exploded
How many tanks did US factories produce?
86,000
How many aircraft did US factories produce?
296,000
How many rifles did US factories produce?
15 million
How much did farm income increase by?
250%
How much did farm production increase by?
25%
What was unemployment like in 1944?
1.2%
How much of the female population was employed by the end of the war?
60%
How did the GNP of the US rise?
GNP - total value of goods produced
It rose from $91.3 billion in 1939 to $166.6 billion in 1945
How many teenage boys were in work?
66%
What about teens in jobs angered their elders?
They often complained that teens were losing their deference through teen culture
How did the number of teens in high school change?
6.6 million in 1940 to 5.6 million in 1944
Why did the number of teens in high school change?
As they wanted to contribute to the war effort (their employers encouraged this) and they enjoyed the independence that wages gave them
How did the national debt change?
$41 billion in 1941 - rose to $260 billion by 1945
How much tax did the people in the highest band (over $200,000 a year) pay?
94%
How much did war bond contribute to the economy?
50%
How did the role of government change?
It got larger:
- 1940 Smith Act -> made illegal to threaten to overthrow the government
- 1940 Selective Service Act -> introduced conscription
- Created agencies such as the Office of War Mobilisation
What was the Office of War Mobilisation?
It was created to control production, food prices and rents
How did the Office of War Mobilisation affect everyday life?
- The production of cars for ordinary people stopped completely
- Many consumer clothes became simpler and made out of lower quality cloth
- Meat, sugar and petrol were rationed
How much did prices rise by in the war?
28%
How much did wages rise by in the war?
40%
What did people do with their extra dispensable income?
They put it into savings accounts
How much was the national saving worth?
$140 billion
What was the War Production Board?
It was a federal organisation that oversaw the output of weapons and supplies?
How much of the world’s total weapons and supplies did the board oversee?
40%, worth $183 billion
How did the board stop production of non essential items?
Denying the factories the raw resources they needed to produce them
What was the office of Price Administration and Civilian Supply set up to do?
It was set up to Control inflation
How did the Office of Price Administration and Civilian Supply control inflation?
It froze prices in March 1942 (except for agricultural commodities) and rationed scarce items
What was the National War Labor Board set up to do?
It was set up to settle industrial disputes and determine wages
What did the National War Labor Board say in July 1942?
They said that wage rises should not normally exceed 15% of the January 1941 rate
What act was passed in October 1942?
The emergency stabilisation act - further tried to limit wage rises
What was the Office of Economic Stabilisation?
It was an office that would oversee the work of the agencies responsible for wages and prices
