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War on the Home front. American during World War II. From peace to war. How did the economy of the United States change during World War I? Rationing Wartime Products Government control. Selective Service. After Pearl Harbor 5 million Americans signed up to join the military.
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War on the Home front American during World War II
From peace to war • How did the economy of the United States change during World War I? • Rationing • Wartime Products • Government control
Selective Service • After Pearl Harbor 5 million Americans signed up to join the military. • But it was not enough… • The Selective Service System expanded the draft and provided another 10 millions soldiers. • Most soldiers were trained in 8 weeks of Basic Training. • What did this do to the work force in the US?
Factories Change Over • Automobile factories in the US shutdown to transition for wartime production. • They soon began producing tanks, planes, and boats to be used in the war. • Other factories and manufacturers change as well making all the material needed for the war. • What effect would this have on the economy?
In 1941, more than three million cars were manufactured in the United States. Only 139 more were made during the entire war. Instead, Chrysler made fuselages. General Motors made airplane engines, guns, trucks and tanks. Packard made Rolls-Royce engines for the British air force. And at its vast Willow Run plant in Ypsilanti, Michigan, the Ford Motor Company performed something like a miracle 24-hours a day. The average Ford car had some 15,000 parts. The B-24 Liberator long-range bomber had 1,550,000. One came off the line every 63 minutes… America launched more vessels (ships) in 1941 than Japan did in the entire war.
Government Control of the Economy • With more factories creating military goods, fewer consumer goods were available which drove up the price. • FDR created the Office of Price Administration (OPA): • Fixed the price of most goods. • Rationed goods that were needed for the war effort such as meat, shoes, sugar, coffee, and gasoline. Families were only given a small amount of these goods. • Why would people be willing to accept this?
War Production Board • The War Production Board (WPB) was created to make sure military and factories had all the resources they needed. • The WPB was in charge of rationing items like oil, gasoline, metals, rubber, and plastics and controlling what companies would be producing for the war effort. • Americans were encouraged to collect scrap metal, tin cans, rags, and cooking fat for recycling into war goods.
National War Labor Board • FDR did not want labor disputes to slow down war production • The NWLB was made up of political, business and labor leaders . • Limited wage increases • Allowed negotiated benefits such as paid vacations, pensions, and medical insurance. • Kept unions stable-workers could not change unions.
Other steps taken by the government • Income taxes were increased and extended to families who had never had to pay them before. • The US Treasury issued War Bonds to raise money for the war effort. • “You could purchase a $25 War Bond for $18.75. The government would take that money to help pay for tanks, planes, ships, uniforms, weapons, medicine, food, and everything else the military needed to fight and win. Ten years from the time you purchased your War Bond you could redeem it and get $25.”
Overall effects on the Economy • Unemployed fell to 1.2 percent. • Average weekly paychecks rose by 35% • Many workers were able to invest, especially in war bonds. • Farmers prospered due to technological improvements and wartime demand. • Women entered the work force in large numbers during the war. • video