American Homefront

Mobilizing for War “Dr. New Deal” to “Dr. Win the War” –Asks factories to operate 24/7 –Anti-business of New Deal was abandoned –CCC & WPA & other programs cut –Big business welcomed back By /3 of American production was war related –Gov’t invests $ to build vital new industries like synthetic rubber and aluminum By the end of the war we had produced: –300,000 aircraft –88,140 tanks –86,000 warships

Retooling the American Economy Government oversees war production War Production Board (WPB) coordinate and plan production allocate materials –Office of Price Administration (OPA) to control prices & ration goods War Labor Board (WLB): –ensure harmoniously labor relations –Why is it important to keep labor from striking? Wants to prevent labor disputes and protect workers’ rights. –FDR tough but fair!

Sacrifices and Prosperity at Home Americans were given rationing books, most had them by the end of 1942 Extend rationing to: –gasoline, tires, butter, sugar, cheese, and meat Americans asked to recycle almost everything: aluminum, tires, paper, etc... Economy was booming by 1943 –family income was rising –inflation was under control Farm income had tripled! Why do you think?

Paying for the War Who usually fights and who usually pays for war? Taxes are way up during WWII –Businesses and the affluent carry a large portion of the burden Incomes of 500,000 or more pay 88% 40% tax on corporations, 90% on excess profit Taxes only covered half the cost of war –Gov’t borrowed the rest (Debt:240billion) –How? Sold War bonds: encouraged us to do our part by buying bonds –Americans do buy –Majority by businesses & financial institutions