Theme 3: d - war & the economy Flashcards
What was production like 1941-45?
- USA produced 86,000 tanks
- 296,000 aircraft
- 15 mil rifles
How did an increase in demand affect farmers?
- farm income grew by 250%
- farmers grew bigger & production increased by 25%
- concerns of overproduction & falling prices were no longer necessary
What was the unemployment rate in 1940 & 1944?
1940: 14%
1944: 1.2%
Unemployment had effectively ceased by 1942
How did the war affect women’s employment?
in 1944 alone, 6.5 mil women entered the labour workforce
by the end of the war 60% of women were employed
How did employment in the Federal Gov change? (1939-44)
1939: 50,000 working for them
1944: rose to 200,000
How did employment change for young people?
- 66% of teen boys found working
1940: 900,000 14-18 yr olds in work
1944: 3 mil were (1/3 of the age group)
What were the consequences of high employment in young people?
- many states had to change their child labour laws to facilitate this
- teens (esp those with both parents working/at war) became more assertive
- elders complained of a decline in deference
- a youth culture emerged (Zoot-suits, popular music)
What did young people in education look like?
- many saw it as irrelevant
- no. of teens in high school fell from 6.6 mil (1940) to 5.6 mil (1944)
- some said the biggest concern for youth was delinquent behaviour
- led to a ‘back-to-school’ drive 1944
How did federal spending change during the war?
The Gov spent twice as much between 1941-45 than it had in the prev 150 years
How were taxes changed during the war & what was the impact?
- raised so those with incomes over $200,000 paid 94% tax
- gave a greater sense of equality
- poor grew wealthier & the rich received a smaller national income
How did war bonds help the economy?
They provided 50% of gov income & were enthusiastically promoted by celebs nationwide
What legislation allowed for more gov intervention in people’s lives?
1940: Smith Act
* made it illegal to threaten to overthrow the gov
* first associated with fascists but soon communists
1940: Selective Service Act
* intro conscription
* first for men age 21-25
* extended at the outbreak of war to 18-45
What did the Office of War Mobilization do? (1943)
Controlled production, food prices & rents
- meat, sugar & petrol rationed
- car production stopped entirely
- clothes made from less material
How did rationing affect the spending power of people?
- as there was little to buy & wages were rising people saved money
- nationally, by 1945 they had $140 bil in savings
- fuelled a post-war boom
How did prices change in relation to wages during the war?
- prices rose by 28%
- wages rose by 40%
- av weekly wage almost doubled from $24 –> $44
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