9.+The+Office+of+Price+Administration,+The+War+Production+Board+and+other+gov’t+agencies+and+their+objectives

Steven Hughes http://greenpack.rec.org/consumer_society/images/consumer_society.jpg

When there was a threat of consumer prices skyrocketing during the World War II era, Franklin D. Roosevelt enacted the Office of Price Administration in order to prevent the inflation. The head of the OPA was Leon Henderson, an outspoken New Dealer (“Office”). In order to fight inflation of consumer goods, the Office of Price Administration “froze” the prices of most goods. This prevented any increase in the prices of these goods. Also, the OPA was able to set maximum prices on nonfarm consumer goods and rents (“Office”). During this time, Congress managed to increase taxes on the American people. Congress also began taxing millions of Americans that were not previously taxed before. This resulted in less money that the American people could spend on consumer goods, thus, keeping the prices of these goods even lower. The government also encouraged citizens to invest their money in war bonds to prevent them from spending it elsewhere. Thanks to the OPA inflation rates during World War II remained below 30 percent.

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Inflation wasn’t the only problem being fought during the war. America was in desperate need of supplies and resources. To face this problem FDR came up with the War Production Board (WPB). The WPB was led by Donald M. Nelson from 1942–1944 and then Julius A. Krug from 1944–1945 (“War”). The WPB was in charge of deciding which companies would be switched to wartime production in order to help the war cause. The WPB only lasted for three years, but in its lifetime it supervised production of one hundred eighty five billion dollars worth of weapons and supplies (“War”). Also, the War Production Board put together nationwide drives that collected all sorts of reusable material to help with the cause. Things like scrap iron, tin cans, paper, rags, and cooking fat were sought after to be recycled into useful supplies.

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Works Cited Danzer, Gerald A. et al. __The Americans__. Illinois: McDougal, Littell Co., 2005.

Jeffries, John W. "Office of Price Administration (OPA)." __Encyclopedia of American History: The Great Depression and World War II, 1929 to 1945, vol. 8__. New York: Facts on File, Inc. 2003. __American History Online__. Facts on File, Inc. Hunterdon Central Regional High School. 22 March 2009.

“War Production Board.” __InfoPlease__. 22 Mar. 2009 .