History 2-3 page paper - "To what extent did WWI alter the status of Americans between 1914-1920"?

WAR INDUSTRIES BOARD The main regulatory body was the War Industries Board (WIB). It was established in 1917 and reorganized in 1918 under the leadership of Bernard M. Baruch (bE-rLkP), a prosperous business- man. The board encouraged companies to use mass-production techniques to increase efficiency. It also urged them to eliminate waste by standardizing prod- ucts—for instance, by making only 5 colors of typewriter ribbons instead of 150. The WIB set production quotas and allocated raw materials.

Under the WIB, industrial production in the United States increased by about 20 percent. However, the WIB applied price controls only at the wholesale level. As a result, retail prices soared, and in 1918 they were almost double what they had been before the war. Corporate profits soared as well, especially in such indus- tries as chemicals, meatpacking, oil, and steel.

The WIB was not the only federal agency to regulate the economy during the war. The Railroad Administration controlled the railroads, and the Fuel Administration monitored coal supplies and rationed gasoline and heating oil. In addition, many people adopted “gasless Sundays” and “lightless nights” to con- serve fuel. In March 1918, the Fuel Administration introduced another conserva- tion measure: daylight-saving time, which had first been proposed by Benjamin Franklin in the 1770s as a way to take advantage of the longer days of summer.

WAR ECONOMY Wages in most industries rose during the war years. Hourly wages for blue-collar workers—those in the metal trades, shipbuilding, and meatpacking, for example—rose by about 20 percent. A household’s income, however, was largely undercut by rising food prices and housing costs.

By contrast, stockholders in large corporations saw enormous profits. One indus- trial manufacturer, the DuPont Company, saw its stock multiply in value 1,600 per- cent between 1914 and 1918. By that time the company was earning a $68-million yearly profit. As a result of the uneven pay between labor and management, increas- ing work hours, child labor, and dangerously “sped-up” conditions, unions boomed. Union membership climbed from about 2.5 million in 1916 to more than 4 million in 1919. More than 6,000 strikes broke out during the war months.

To deal with disputes between management and labor, President Wilson estab- lished the National War Labor Board in 1918. Workers who refused to obey board decisions could lose their draft exemptions. “Work or fight,” the board told them. However, the board also worked to improve fac- tory conditions. It pushed for an eight-hour workday, promoted safety inspections, and enforced the child labor ban.

FOOD ADMINISTRATION To help produce and conserve food, Wilson set up the Food Admin- istration under Herbert Hoover. Instead of rationing food, he called on people to follow the “gospel of the clean plate.” He declared one day a week “meat- less,” another “sweetless,” two days “wheatless,” and two other days “porkless.” Restaurants removed sugar bowls from the table and served bread only after the first course.

The First World War 595

Background In 1913 Henry Ford speeded up factory production with a constantly moving assembly line. Wartime production spread this technique throughout the country.

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MAIN IDEAMAIN IDEA

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Making Inferences

Why would labor disputes affect the war effort?

Consumer Price Index*

*A measure of changes in the prices of goods and services commonly bought by consumers; see Economics Handbook, page R39.

1914 1915 1916 1917 1918 1919 1920

C o n su

m e r

P ri

c e I

n d e x

30

35

40

45

50

55

60

Source: Historical Statistics of the United States

Average Annual Income

1920

1919

1918

1917

1916

1915

1914 $627

$633

$708

$830

$1,047

$1,201

$1,407

The War Economy, 1914–1920The War Economy, 1914–1920

SKILLBUILDER Interpreting Graphs 1. How did the rise in average annual income compare with the

rise in prices from 1914 to 1920? 2. How might the combined change in wages and prices affect

a working family?