Roosevelt had to take strong steps to get the money for all this spending. He put limits on wages. He increased income taxes to as much as ninety-four percent on portions of incomes over two hundred thousand dollars. And he asked the American people to lend money to the federal government. The people answered by purchasing almost one hundred billion dollars in war bonds.
The great increase in public spending raised the threat of high inflation. Roosevelt created a special office with the power to control prices. Many Americans agreed with the idea of price controls. But every business wanted somebody else's prices controlled, not their own.
Federal officials had to work hard to keep prices and supplies under control. They restricted how much meat, fuel and other goods people could buy.
The price control program generally worked. Its success kept the American economy strong to support the troops fighting in Europe and Asia.
One reason these strong economic steps worked was because most of the American people fully supported the war effort.
(MUSIC: “Rosie the Riveter”)
Rosie the Riveter came to represent American women who worked in factories during World War II. This government poster was designed to get women involved in the war effort.
STEVE EMBER: You can look at photographs of people from those times and see in their faces how strongly they felt.
In one picture from the state of North Carolina, a group of men are standing in front of old rubber tires. They are planning to give the tires to the Army to be fixed and used for military vehicles.
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2013-11-25
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2013-11-25