Fuel Administration and Government of America Essay Example
Fuel Administration and Government of America Essay Example

Fuel Administration and Government of America Essay Example

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  • Pages: 4 (1043 words)
  • Published: October 5, 2021
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America underwent multiple economic changes as a result of various political conflicts, including World War 1, World War II, and the Cold War.

During World War 1, the American economy initially declined but experienced a sudden increase in financial prosperity as Europeans bought American goods for the war effort. In 1917, America's entry into the war resulted in a significant rise in federal spending, leading to a shift from civilian goods production to materials used in warfare. From 1914 to 1918, there was an increase of 3 million military personnel and half a million government employees. The creation of new manufacturing jobs and enlistment of many young men in the military instead of their civilian positions contributed to a decrease in unemployment by 6.5 percent.

In this period, the U.S entire cost was around $32 billion dollars of gross nationwide production. The government

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employed various methods to acquire funds, including raising taxes, borrowing money from the public, and printing money. The government utilized the newly created reserve to cover its expenses. Among these three options, raising taxes was considered the most effective as it communicated the actual cost of the war to the public.

Although borrowing was used, it was seen as unfair because it involved conscripting gentlemen into the military and then relying on them to pay high taxes to finance war expenses. However, some individuals, like Treasury Secretary, suggested that a balance between borrowing and taxing would be more effective. During the war, the American government attempted to control financial activity through centralized cost and production regulations enforced by the Food Administration, Fuel Administration, and War Industries Board. However, these programs had limited impact due t

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their late implementation and management difficulties. Despite the government's active involvement in the economy during the war, federal spending increased as a result.

Another outcome was the rapid disappearance of most regulative agencies due to the efforts of conventional politicians. In addition, World War II also had a significant impact on the financial policies of the federal government. During this time, America was experiencing a severe financial depression that severely affected the nation for an extended period (Rockoff, Hugh, 162). The populace encountered economic hardships such as inflation and unemployment.

Despite the implementation of price regulations, citizens faced ongoing financial struggles and observed minimal changes. Prior to America's entry into World War II, the president strategically invested time and money in national defense while pledging non-involvement in the escalating war. However, his true objective was to prepare for a worst-case scenario. He successfully persuaded Congress to augment defense spending, bolster the army, and fortify the American air fleet. As a result, substantial federal expenditure focused on rearming and enhancing national security. Consequently, wages for armed forces personnel were raised, funds were allocated for peaceful draft initiatives, and loans were extended to support both the Soviet Union and Great Britain.

During this period of combat, labor emerged due to the establishment of war manufacturing facilities across America. The U.S declaration of war led to the demand for labor (Welch ; Susan, 8). This demand arose from the mobilization efforts for war, including the urgent production of weapons, vehicles, and other military equipment. To meet the increased production demands, employers were desperate to fill positions. Consequently, job opportunities opened up for the traditional workforce, women, and people of non-white ethnicities.

To attract potential workers, employers chose to raise wages as the demand for labor grew stronger.

During this time, businesses were in great need of laborers and offered special incentives, such as medical care, to attract workers. The government's spending had positive effects on various areas, including California. The federal government funded aircraft factories, new defense manufacturing plants, and military base construction in places like San Pedro. Additionally, the existing defense industries in San Diego experienced significant growth. California received an impressive $35 billion from the federal government during this period, which made up one-tenth of the total expenditure on domestic war projects. However, the migration of people to more developed regions also posed challenges.

The need for new construction and solutions to problems such as sanitation arose in city governments due to a large number of people seeking improved living conditions. The war mobilization period not only provided temporary relief from the Great Depression but also kickstarted economic growth post-war. In order to maintain a strong military force, the federal government mandated most manufacturers to switch production to war-related items like armored vehicles, shifting away from consumer goods. Conflicting ideologies between the Soviet Union (communism and authoritarianism) and the U.S (capitalism and democracy) naturally gave rise to the Cold War.

Following World War II, the cultural domain of Americans was heavily impacted by the global conflict between superpowers. Within the Cold War's numerous facets, ideological disparities played a pivotal part in molding citizens' daily existence. Throughout this era, free market capitalism garnered substantial backing and admiration from the populace based on its presumed capacity to foster affluence and ingenuity. Americans wholeheartedly embraced this ideology and believed it

was their duty to contribute to economic expansion through consumer goods purchases. As a result, the United States emerged as an influential economic powerhouse.

According to Norton and Mary (770), the United States utilized its financial power as a weapon against the Soviet Union during this period. The president played a crucial part in stimulating substantial economic expansion through tax reductions and deregulation. This expansion resulted in an increase in federal income tax earnings, which were subsequently used for military expenditures. More specifically, these funds were allocated towards the Strategic Defense Initiative and aiding American allies worldwide.

The United States implemented a strategy called containment to stop the Soviet power from expanding. This strategy included military intervention worldwide, like in the Vietnam and Korean wars. These interventions resulted in significant American soldier casualties (Santos & Adolfo, 627). Consequently, due to prioritizing support for their allies, the United States had higher expenses and lower savings.

In pursuit of containment, America's commitment occasionally led it to abandon its ideals and support dictators such as General Augusto of Chile, as long as they were communists. The Cold War resulted in the election of presidents like Kennedy, Truman, and Reagan who engaged in a financial battle with the Soviet Union. Consequently, this unsustainable financial plan burdened the federal government.

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