The War Economy 1914-1919 Flashcards
How was the economy doing before the US even officially joined the war?
Trade with allies had risen 400% between 1914-16 so business was booming as people were more desperate for exports.
How many reform acts were put in place during 1917 in order to prepare the economy for the war? And why were they necessary?
- When the US entered the economy struggled to cope so they needed a new system to be put in place.
What was the first reform act in June 1917 and what did it do?
Liberty loans were created to raise funds for the war and were sold to big business and normal citizens alike.
Which act came into force in July 1917?
The War Industries board was set up to co-ordinate war production.
Which act was for rationing and when was it?
August - the Food and Fuel Control Act comes into force to regulate resources
What was the War Revenue Act of September 1917 for?
To increase federal spending from $1.3 million in 1916 to $15.6 million in 1918.
What was the final reform act passed in December 1917?
The Nationalisation of railroads in order to control transportation.
Give 3 examples of how the economy boomed during the war?
There was full employment
Gross National Product (GNP) rose from $46 billion in 1916 to $77 billion in 1919
The steel industry was booming
What were the long term impacts of the war economy?
There was a downfall afterwards and a recession that lasted until 1921 but overall they did very well as the German, Ottoman and Russian empires had all been destroyed and Britain and France and been pushed into bankruptcy.
