World War II (5) – The Home Front: The Economy & Supporting the War
The War Economy –
 Key to Victory =
o Why?
o Office of War Mobilization oversaw entire economy
 Conversion of the Auto Industry
o
 New Opportunities for Profit – 1943 – ____ of economy devoted to war effort
o Cost-plus system – gov’t paid all development & production costs +
o How would the cost plus system encourage business to convert to war production?
o New Markets →
o New methods →
Workers, the War, and Unions –
 _____________________________
o Unemployment –
o Average Wages –
1933
1938
1941
1944
 Union membership –
o What would be a reason for the increase?
 Agreement between Unions & Business (after Pearl Harbor) –
o
o Wildcat strikes –
The Economy & Supporting the War
 Office of Price Administration (OPA)
o Purpose = to control ____________(freeze prices) & ________________ (rationing)
 Shortages
o Supplies of many good cut off –
o Responses – Victory gardens, cut back on material in clothing, scrap metal
drives/rubber collections, etc.
 Rationing
o Distribution of goods –
o “_____________________” – 1 in 4 bought products here
o Video – Add any interesting or new information from the video here.
Financing the War – Federal Spending –
1939
$
1945
$
per day at times
$
 Taxes –
o Revenue Act of 1942 –
 Borrowing –
o Bonds –
 Results –
o
o
How were people made to feel invested (that they had a part or a role) in the war effort?
Propaganda
 Gov’t & Media –
 ________________________________________ (OWI)
o Oversaw propaganda effort
o Highlighted common needs, minimized differences, “demonize” enemy
 Hollywood
o Movie stars, singers, movie makers all helped build support for the war
 Propaganda Video
o Watch the “Domestic Propaganda” Video and write any new information below.