Download - Unit 6 Chapter 20
Unit 6 Chapter 20
Identify and Explain changes American society
experienced with the mobilization of its economic
and military resources during WW II.
ideas that are often exaggerated and that are spread in order to
help a cause
In the future days, which we seek to make secure, we look forward to a world founded upon four essential human freedoms.
The first is freedom of speech and expression -- everywhere in the world.
The second is freedom of every person to worship God in his own way -- everywhere in the world.
The third is freedom from want -- which, translated into world terms, means economic understandings which will secure to every nation a healthy peacetime life for its inhabitants -- everywhere in the world.
The fourth is freedom from fear -- which, translated into world terms, means a world-wide reduction of armaments to such a point and in such a thorough fashion that no nation will be in a position to commit an act of physical aggression against any neighbor-- anywhere in the world.
The first is freedom of speech and expression -- everywhere in the world.
The second is freedom of every person to worship God in his own way -- everywhere in the world.
The third is freedom from want –
which, translated into world terms, means economic understandings which will secure to every nation a healthy peacetime life for its inhabitants -- everywhere in the world.
The fourth is freedom from fear –
which, translated into world terms, means a world-wide reduction of armaments to such a point and in such a thorough fashion that no nation will be in a position to commit an act of physical aggression against any neighbor-- anywhere in the world.
Private Snafu – Rumors
http://youtu.be/o9_zszHmRP0
Rationing – the controlled distribution of scarce resources, goods, or services
http://youtu.be/3eoE12ywDzASylacauga, Alabama
What did the U.S. government do to create a
wartime economy?
Standard 22 Price Controls
It exercised general responsibility over the
nations economy.
Business was guaranteed a fixed price and generous profit.
price floor – government regulated minimum price at which a product can be sold or wages can be set.
S
D
Guaranteed Price
PriceFloorP
Q
Above equilibrium!
Surplus ofMilitary goods
Price FloorP
QQeq75
Peq$5
D (jobs available)
S (people wanting to work)
In millions15 45 90
PriceFloor
# of jobsavailable
# of jobsBeing sought
MarketEquilibrium
$7.40
Unemployment:Surplus of Labor
Deficit Spending –
Using money that isn’t there.
Remember, our economy was recovering from the Depression.
Value of all goods and services
produced annually by a nation
• Created by FDR to control wages and prices– “hold the line” order restricting the
increase of wages.
– Price ceiling – government regulated highest price at which a product can be sold or wages set.
Price CeilingP
QQeq75
Peq$5
D
S
In millions15 45 90
PriceCeiling
Qs Qd
Shortage
Practical Application
• INFLATION – GENERAL RISE IN WAGES AND PRICES
• CONSUMER PRICE INDEX (CPI) – an index of the changes in the cost of goods and services to a typical consumer over a set period of time.
• Cost of Living Adjustment– % increase to wages in order to compensate
for rising prices.
SALE OF BONDS
MONEY SUPPLY
http://youtu.be/J0wJu9dY8xs
How American Industry Won WW II
