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The Roosevelt administration set up a government agency known as the Office of Price Administration (OPA) which fixed prices for things that were in short supply and likely to inflate in cost, such as oils, meat, sugar, fuels, etc. The OPA also limited the production of certain items like vehicle tires, automobiles, trucks, etc. to the types and quantities required for the war effort. Civilians were generally not able to purchase such items from 1942 thru 1945, although there were exceptions for people whose services were considered critical to human welfare, such as doctors. The policies established by the government were called "price control," and they were generally effective, although there was an active "black market" patronized by unpatriotic, undisciplined people who considered themselves special.
There are a number of things that the US government did to combat wartime inflation. The man thing that they did was to fix the price of things and also imposed rationing through coupons instead of cash among other things.
There were several things that helped control wartime inflation. The sudden drop in unemployment due to the draft and ,massive expansion of industry was a major factor. Price freezes and rationing were used to great effect. Also, lack of available money greatly hindered inflation. There was a shortage of goods, but also a shortage of cash because the government did not resort to massive cash printings.
There were some questionable acts and economic "slight of hand" that helped as well. Many European nations had their gold reserves sent to America for safe keeping, and these reserves were "discreetly" counted as American assets, artificially raising the value of the dollar. The income promised through Lend-Lease and other programs was also counted as actual income, giving the appearance of a healthy trade balance when in fact very little money was changing hands. These sorts of economic "magic tricks" were only temporarily effective and in 1945 the government was dangerously close to being bankrupt, but they served their purposes for the vital short-term.
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Was inflation a big problem during revolution war?
helllo evrybody
How many combat medic badge were given out during Vietnam war?
ONE
When was the B-52 stratosphere first used in combat?
During The Vietnam War
How many American troops served in combat during world war?
1,300,000
What caused shortage of goods during the revolutionary war?
As the shortage of goods grew worse Americans also faced inflation. Inflation is a rise in the price of all goods. Because of inflation, people needed more money to buy the same amounts of goods and services.
What did the the government do to combat inflation?
The government raised and extended the income tax to help combat Wartime Inflation. The government also encourage individuals to by war bonds.
Was inflation a big problem during the revolutionary war?
Inflation was a big problem for Americans during the Revolution
Why was there a inflation during the Revolutionary War?
During the revolution, the U.S. started printing lots of money to pay for the war, since the federal government couldn't levy taxes due to the laws laid out by the Articles of Confederation. Lots of available money leads to inflation.
How did the US Government pay for World War 2?
Several ways. Confiscation of gold just before the war. The sale of War Bonds during the war. Inflation after the war. The US government paid for World War 2 by taking money from the economy of the surrounding states. This money was used to make supplies for the war.
Was inflation a big problem during revolution war?
helllo evrybody
During what war was TV's Combat set?
WWII
What viral disease caused more deaths during World War 1 combat?
Influenza (or the flu) was the disease that killed more men during the war then combat did.
How were war time inflation and food shortages kept in check during World War 2?
War rationing
What viral disease cause more death during World War 1 than combat?
Influenza (or the flu) was the disease that killed more men during the war then combat did.
Why did food cost so much for the South during the Civil War?
inflation
What was the Russian inflation rate during the Great War?
Barack Obama is my friend!
In order to finance a war the government prints a great deal of paper money What is the result?
inflation
