Organizing for Victory

Financing the War

• Government had a huge role in the economy during WWII• 1945 Federal Budget was

$95.2 billion, which was 10X what it was in 1939• National Debt was $258.6

billion,which was 6X greater

Taxes!...& Bonds

• Tax collections rose from $2.2 billion to $35.1 billion• Mass taxation, not only on the

upper class, but also on the middle class• This was sold as a way for

citizens to show their patriotism• $135 Billion in war bonds

Bureaucracy• Number of government workers

increased to 3.8 million during WWII– A 4X increase in number– Far more job creation than the New

Deal!• Leadership of federal agencies

moved from reformers during New Deal to business executives– Dollar a year men, because they

volunteered for government work as corporate workers

Inflation• Consumers had a lot more money to

spend, so producers began to increase their prices: inflation!• Office of Price Administration:

regulated the domestic economy• By Feb. 1942, prices were rising by

2% a month; in April the OPA froze prices and rents at their March levels• Congress passed the Anti-Inflation

Act, which stabilized prices, wages, and salaries

War Production Board

• Awarded defense contracts• Evaluated military and civilian

requests for scarce resources• Oversaw the conversion of industry

to military production• WPB encouraged businesses to

move to war production by granting generous tax writeoffs that guaranteed a profit and keeping the factories open after the war

WPB and Efficiency

• WPB dealt with major corporations rather than with small businesses• The 56 largest corporations

received 3/4 of the war contracts, and the top ten received 1/3 of them!• Large corporations became the

major form of output• 1940: largest 100 companies

manufactured 30% of industrial output; by 1945 it was 70%

What were they producing?

• By 1945, business and gov’t produced:–100,000 tanks–296,000 airplanes–15 million rifles and machine guns–64,000 landing craft–6,500 ships

• By 1944, the U.S. produced 2X what the Axis powers did combined

End results:

• Government’s role was very large in turning the economy around• GDP went from $99.7 billion in

1940 to $211 billion in 1945• Federal government was the driving

force during WWII, like it was in the New Deal• So it goes back to our question:

was it the New Deal or WWII that got the US out of the depression?????

Mobilization for War

• 15 million men and women in military by end of WWII

• Draft boards had registered 31 million men and women between 18-44

• Over half of men were rejected due to things such as poor teeth, poor vision

• Race discrimination was prevalent: 700,000 African Americans fought in segregated units

• Other groups were never segregated

Women in the War

• 350,000 women enlisted in the armed services• Served many roles from nurses to

volunteer services to volunteering for actual duty• Women were barred from combat• Clerical work, communications, and

health care were most common jobs

Jobs at Home

• The US faced a labor shortage due to large numbers of military personnel

• 7 million new workers were available for industry

• “Rosie the Riveter”• Women made up

36% of workforce in 1945, only 24% in 1940

Unequal Conditions

•Women were seen by many men as a temporary fix until the men came home from war• Pay was not even close to

equal• In shipyards: the top women

made about $7 an hour, while the top men made $22

National War Labor Board

• FDR set up the NWLB in 1942• Established wages, hours, and working

conditions• Had the authority to order government

seizure of plants that did not comply• 40 plants were seized during the war• Many minor disputes arose but were

averted by the NWLB (RR’s, miners)• Union membership rose during WWII due

to perceptions that the situation was far worse

Civil Rights During Wartime

• Due to time constraint, I am asking you to look at this information on your own• Please refer to your textbook,

pages 760-761 (you should have already read this!!!)

Politics During Wartime

• FDR did not call for much social or economic change during the early years of WWII• Republicans had made small gains

in Congress in 1942• As a result, FDR agreed to drop

several New Deal Programs such as the CCC and National Youth Administration, which weren’t as necessary due to full employment

Later during the war…

• FDR began to promise new social welfare measures

• Lots of rhetorical speaking, Congress did not necessarily support this

• One that did work was the GI Bill:• Provided education, job training, medical

care, pensions, and mortgage loans for men and women who served in armed forces in WWII

• Later extended to Korean War Veterans

Election of 1944

• FDR called for a 4th term due to WWII• A new VP candidate was chosen:

Harry Truman, who was known from his time in Congress for heading a Senate investigation of government efficiency in awarding wartime defense contracts

Dewey• Thomas Dewey was Republican candidate– Only 42 y.o.– Ran again in 1948

• Famous for fighting organized crime in NY• Closest election since 1916, many were

concerned about FDR’s health• 60% of FDR’s votes came from urban

areas, showing diversity of voters support of him– New Deal Coalition