Question

Write a paragraph describing how the US 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, and the war labor board.

Answer 1

During World War I, the US government managed the economy in a variety of ways. The Food Administration, led by Herbert Hoover, was responsible for rationing food and encouraging citizens to conserve resources. The War Industries Board, led by Bernard Baruch, was responsible for coordinating the production of war materials and allocating resources to the war effort. The War Labor Board, led by William Howard Taft, was responsible for resolving labor disputes and ensuring that workers were paid a fair wage. These efforts helped to ensure that the US economy was able to meet the demands of the war effort. The economic effects of this management were significant. The US economy grew rapidly, with the government spending billions of dollars on war materials and wages for workers. This increased demand for goods and services led to a period of economic growth and prosperity.