Question

Write a paragraph describing how the u.s. government managed the economy during world war i and the economic effects of that management. consider the roles played by the food administration, the war industries board (wib), and the war labor board.

Answer 1

The US government played a huge role in the American economy during World War I. One way in which they controlled the economy was through the War Industry Board. This government agency monitored the production of war related goods and raw materials as well as being able to tell companies how much of a product they needed to make. This agency even had the power to fix prices if they saw it as necessary.

 Another group that was critical during this time was the war labor board. This agency worked to settle labor disputes between business owners and workers. This agency was critical, as any strikes by labors in important industries could greatly affect the resources available for the US military.

Lastly, the US food administration was another key government group that helped during the war effort. This agency focused on increasing agricultural output (aka food) and reducing the amount of waste. This group used advertisements to encourage American citizens to cut back on food such as bread so that there were more resources available for the war effort.