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Chapter 22: WWI and the Emergence of the Command Economy

This chapter presents discussions on the financing of World War I as well as its impact on the American economy as a whole.  Of particular note is the emergence of a very different kind of American economy regulated by the federal government to a degree never seen before in the US.  The purpose was the mass mobilization of the US for the war effort yet the results were long-lasting.

1. How did the US finance World War I?  How did the overall economy change to allow the country to focus its efforts and its finances on the war?

2. The war served to create the first ‘command economy’ in US history.  What does the textbook mean by this term and how did the institution of this kind of economy impact the country moving forward? 

Chapter 23: “Normalcy” in the Post-War Period

This chapter discusses the years following the First World War, which included both an economic boom as well as indicators of future economic turmoil. 

1. How and why did the US economy grow in the 1920s?  Provide examples that reflect this growth.

2. Many economic historians argue the Stock Market Crash pf 1929 and the Great Depression which followed it were predictable to some degree based on elements of the 1920s economy.  What evidence might back up such claims?