Write a paragraph describing how the U.S. 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 (WIB), and the War Labor Board.
During World War I, the U.S. government implemented various measures to manage the economy and ensure efficient allocation of resources. One key entity was the Food Administration, led by Herbert Hoover, which was tasked with ensuring a stable food supply for both soldiers and citizens. The Food Administration encouraged voluntary conservation, implemented price controls, and introduced rationing to prevent hoarding and ensure equal distribution of food. Another significant organization was the War Industries Board (WIB), led by Bernard Baruch, which was responsible for coordinating the procurement of supplies and raw materials needed for the war effort. The WIB exercised regulatory control over industries, allocated resources, and set production priorities to meet military demands. Lastly, the government established the War Labor Board, which aimed to prevent labor unrest by mediating disputes between workers and employers and setting standards for wages, working hours, and working conditions. These governmental efforts resulted in a more centralized economy, increased government intervention, and enhanced cooperation between private businesses and the federal government. While these measures effectively boosted industrial production and maintained an adequate food supply during the war, they also had long-lasting effects on the economy, such as price controls leading to inflation, increased government influence on industry, and a precedent for future government involvement in economic affairs.
