*Note: some of the examples can go under more than one category
- economic evolution
- military officers wanted to deal with familiar, reliable, large manufacturers
- largest corporations garnered the lion's share of military contracts
- US steel, Ford, General Motors/Electric, Du Pont
- smaller companies cant produce as much --> govt turns to bigger corps --> bigger corps grow --> more profit --> bigger corps grow more
- firms with fewer than 100 employees accounted for 26% of materials in 1940 and decreased to 19% by the end of the war
- after tax corporate profits grew from $6.4billion before the war to $11billion after the war ended
- Revenue Act of 1942 provided for $7billion in new individual income taxes used to fill the treasury's vault and soaked up potentially inflationary purchasing power
- more money to pay for the war (deployment of troops and ESPECIALLY manufacturing war supplies)
- accounted for arround 45% of the total war cost
- individuals payed more income taxes and the government included 13million new taxpayers into the system
- for the first time, individuals payed more income taxes than corporations
- many did not protest this because of strong patriotism--their income tax money went into the war effort to save citizens and build bombers/other war materials
- social evolution
- need workers to fill in for soldiers--> gender/racial minorities migrate to urban areas
- conflict--detroit race riots/zoot suit riots
- especially big effect on ship&aircraft production--kaiser ship, willow run plant
- Bracero program--brought Mexicans over the border to fill in agriculture positions
- led to many disagreements/fights in towns
- Executive order of 8802--prohibited discriminatory employment practices by federal agencies, unions, and companies engaged in war related work
- FEPC (Fair Employment Practices Commission) enforces the policy
- 19million women went into the labor force
- worried about standard of living for citizens (Donald Nelson
- what would people live off of it all the materials and labor were contributed towards the war effort
- politiclal evolution
- set of policies to lever the economy onto a war footing
- tax inducements, financial enticements, market mechanisms, incentives in tax codes, selling raw materials allocations and transportation priorities
- sometimes, outright seizure of industrial and transportation facilities temporarily and in extreme measures
- tax legislation fueled war economy by using incentives to nudge industries onto war basis
- industrial retooling by allowing full amortization of investment in war related plant and equipment over just 5 years, a provision that sheltered otherwise taxable profits (doubles tax deduction)
- companies could claim tax deductions for more than they actually deserve (if war does not last for 5 years)--pay no taxes
- allowed private people to use public capital to make guaranteed profit for self
- cost-plus basis: government paid for cost of turning factory into a war plant --> paid for materials --> paid for finished products --> paid for reverting back into the original plant (read more on page 623)
- war manpower commission
- charged with planning to balance labor needs of agriculture, industry, and armed forces
- for increased productivity in each sector, no extra food, no extra supplies, no extra men (no more then necessary amount so that nothing would be wasted)
- "work or fight" order to make most of the citizens and machine power
- Controlled Materials Plan
- gave the major government contracting agencies the power to allocate the key metals of copper aluminum and seel to their suppliers
- new measure of order to economic movilization
- run through center source so much more efficient and less waste (allocated only needed portions)
- advantaged largest contractors (because military and naval bureaus liked them and they could produce more)--> smaller producers couldnt gain access to neede materials
- concentrated questions about trade-offs--more expeditious and efficient
These are the main ideas, but you can also look up...
- strikes and labor disputes (AFL and CIO)
- Office of price administration (inflation, wage/price freezes
- individual factories (henry kaiser--1 ship in 17 days instead of 355)
- willow run by Ford (mile long assembly line that produced 8,500 B-24 bombers
- "An American Dilemma" --Gunnar Mydral
- GI bill
Good luck on the FRQ tomorrow!!!
**Don't forget to define key terms in the question in order to lead your reader where you want**
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