American Government - The World War II - Essay Example

The war ended the depression itself. The federal government was able to regulate the economic activity and partially control the economy through consumption and spending. US involvement led to a massive mobilization effort both at home and on the Warfield. Millions were serving overseas in the nations armed forces but back home also people dedicated themselves to support the war effort in whatever way they could. Women took up jobs in aircraft manufacturing plants, ammunition plants, or military uniform production factories.

The American citizens also participated in rationing and scarp metal drives. They even purchased Liberty bonds as a mark of their support for the war. This was an effort by the American government to raise funds for the war (LOC). Those who purchased the bond also felt they were contributing in some way to the country. Through celebrity auctions, the federal government used war bonds to sell the war to the American public instead of relying on American involvement in the war to sell bonds (Schultz & Tishler, 1999).

Commercial institutions like banks also bought billions of dollars of bonds and other treasury paper. The Department of Treasury was successful in generating funds for the war (Tassava). Income tax was extended to all Americans and tax was collected by withholdings from paychecks. Tax-payers increased from 4 million in 1939 to 4 million in 1945. The government thus collected $45 billion by way of taxes but it was still short of the $83 billion spent on war in 1945. Those who earned as little as $500 paid tax @23% while those who earned more than a million paid at the rate of 94 percent.

The average income tax rate was 20.9 percent. The American industry was revitalized and many sectors like aerospace, atomic energy were sharply oriented to defense production (Tassava). The rapid scientific and technological changes created a permanent expectation of continued innovation by scientists,