Economic Changes Standard 7.2 E.Q. How did American prepare for WWII?

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Economic Changes Standard 7.2 E.Q. How did American prepare for WWII?

Economic Change The Fighting of World War II required the total mobilization of the American economy, the United States government and American society on the home front. Private industries converted to war production even before Pearl Harbor to so supply the Allies through Lend Lease.

Industry OPA – Office of Price Administration Fought inflation by freezing wages, prices, and rent. They raised taxes and encouraged people to spend their extra money on war bonds Set up a system for rationing. WPB – War Production Board Converted peacetime production to wartime production. They also organized nationwide drives to collect scrap iron, tin, paper, rags and tires.

Government The national government managed the economy by controlling scare resources to businesses, and controlling wages and prices. War Bonds: modern advertising persuade citizens to lend $ to the American government by purchasing war bonds and then receiving interest for them once after so many years.

People In order to prepare for war, advertisers tried to persuade citizens to lend money to the American government by purchasing war bonds. Rationing of scarce resources was made mandatory through the allocation of ration coupon booklets. Mandatory: household received ration for meat, shoes, sugar, coffee, and gasoline. Voluntary: Victory gardens or rolling your own cigarettes.