USA HISTORY

AMERICAN IMPERIALISM(1890 1919)

THE UNITED STATES IN WORLD WAR I

[SOURCES]
During World War II, the War Production Board

(A) ** favored large over small contractors

(B) had complete control over military purchases

(C) won the support of small business

(D) was maintained under the auspices of the Department of Labor

(E) was directed by Roosevelt ally Leon Henderson

EXPLANATIONS BELOW

Concept note-1: -Its purpose was to regulate the production and distribution of materials during World War II in the United States and to convert peacetime industries to meet the demands of war.

Concept note-2: -Nelson’s WPB got the authority to commandeer materials and prioritize their use, force the conversion and expansion of factories, and ban the production of “nonessential” goods. Soon, items such as refrigerators, bicycles and waffle irons were largely out of production for the duration of the war.

Concept note-3: -During World War II the War Production Board (WPB) was granted supreme authority to direct procurement of materials and industrial production programs. Established by Executive Order 9024 on January 16, 1942, the WPB replaced the Supply Priorities and Allocation Board as well as the Office of Production Management.

Concept note-4: -World War II was financed through debt and higher taxes, by the end of the war, U.S. gross debt was over 120% of GDP and tax revenue increased more than three times to over 20% of GDP. Although GDP growth skyrocketed to over 17% in 1942, both consumption and investment experienced a substantial contraction.