History 203 MidTerm

Topics: Great Depression, World War II, Popular culture Pages: 3 (1888 words) Published: October 29, 2014

How did mobilizing for war change the economy and its relationship to government? Which of these changes, if any, spilled over to the postwar years? Mobilizing for war normally would cause outrage among the public, but that was not the case when Wilson’s war message was delivered. The public response was extremely enthusiastic; many prominent public figures endorsed the call to arms. Above all, war mobilization was a campaign to unify the country. In August 1917, Congress passed the Food and Fuel Act, authorizing the president to regulate the production and distribution necessary for the war effort. Herbert Hoover was appointed to lead the Food Administration (FA), he imposed price controls on certain agriculture commodities that were purchased by the government and then sold to the public through licensed dealers; Hoover relied on persuasion high prices and voluntary controls, rather than mandatory food rationing. The Food Administration depended on motivating hundreds of thousands of volunteers in thousands of American communities to assist the war effort in various ways. Because the Government got involved and created the Food and Fuel Act, the war effort benefited because FA directed “Wheatless Mondays, Meatless Tuesdays, and Porkless Thursdays” this resulted in cutback of consumption among the people, and increase in food exports to help sustain the Allied war effort. The tax structure changed dramatically during the war effort, the federal government was required to pay the unprecedented cost of fighting the war, which cost about $33 billion. Taxes on profits replaced excise and customs levies as the major source of revenue. Since 1913 the minimum income subject to the graduated federal income tax was lowered from $3000 to $1000 which increased the number of Americans who paid income tax from 437,000 in 1916 to 4,425,000 in 1918. The bulk of war financing came from government borrowing; Bond drives became highly organized patriotic campaigns...
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