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Organizing the American Economy for War

Organizing the American Economy for War. War Productions Board (WPA). Converted (changed) industries military production American businesses mobilized their resources to serve the needs of the military. Automobile manufacturers went from car engines to airplane and tank engines

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Organizing the American Economy for War

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  1. Organizing the American Economy for War

  2. War Productions Board (WPA) • Converted (changed) industries military production • American businesses mobilized their resources to serve the needs of the military. • Automobile manufacturers went from car engines to airplane and tank engines • Soft drink company to artillery shells • Model trains to bomb fuses

  3. Mobilization

  4. Mobilization/propaganda • Write the definition of propaganda • I think… • I know… • These posters remind me of…because… • Share one response with your neighbor.

  5. How did The United States pay for the War? • Government spending rose • Paid for WWII the same way it paid for WWI • Raised Taxes • Individual and corporate (businesses) • Congress began withholding a certain amount of money from people’s paychecks to make tax collection easier (we still have this system today) • Borrowing • Banks/financial institutions • American people: war bonds

  6. Rationing • Rationing: a fixed portion or amount of a particular product (flashcard) • The U.S. government rationed about 20 consumer products. • Gasoline, tires, sugar, meats, etc… • American consumers received books of coupons each month to purchase rationed items. • Ensured that everyone would have fairly equal access to those goods.

  7. People do their part on the Home front • Saved gasoline by riding their bicycles to work and forming car pools • Recycled metal, paper, and rubber. • Planted victory gardens • Buying bonds • Helped with morale of the American public “I am making a contribution to the war effort”

  8. Consequences of mobilization • Unemployment low • People have $$$$ to spend • Not enough consumer products available • Why? Factories are making products for war • People can charge a higher price for what products are available • What does the U.S. government do? • Price Controls: restrictions on the prices charged for goods. • AND…

  9. Exit Slip • How did businesses in the United States help mobilize for WWII? • What is one way that the United States government paid for resources needed to mobilize for WWII? • How are WWI and WWII similar? • Why was rationing necessary during WWII?

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