The American Economy Prepares for War
World War II gave the American economy the boost it needed to get out of the Great Depression. Prior to the onset of the war, the United States, like many other parts of the world, was in the midst of a decade-long economic downturn. However, the nation was able to rebuild itself as a result of the war. Although not directly involved in the war in the early years, the United States did produce goods and supplies to the Allied forces, which sparked a surge in the American economy. Eventually, the United States shifted to a market that was based solely on wartime production.
Woman in a factory
In order to ensure a victory, all efforts had to be geared towards the war. Increased production of bombers, tanks, and munitions were vital for success. As a result, production of parts and materials for such things was pushed to the forefront. In other words, luxury items that were once manufactured in the United States, such as cars and refrigerators, were considered secondary to weapons for our soldiers fighting abroad.
The new demands on production forced the government to meet these challenges head on. In April 1941, an executive order established the Office of Price Administration (OPA). The OPA sought ways to reduce inflation by avoiding any shortages of supplies. In January 1942, the War Production Board (WPB) was set up to help industries shift to wartime production.