POLI1061 Lecture Notes - Lecture 7: War Production Board, War Industries Board, United Mine Workers
2 May 2018
School
Department
Course
Professor
Labor and the war
● Labor shortage
○ 15 million men and women off to war
○ workforce up 20%
● ` Boost in union membership
○ 10.5 million members 1941
○ 13 mil 1945
○ government focused on preventing inflation and increasing production
○ Little Steel Formula
■ 15% limit on wage increases
■ ‘no strike’ pledge not stop production during war time
■ ‘maintenance of membership agreement’ automatic enrollment in unions
which kept the bodies alive without allowing suspension of production
● rank-and-file members (normals) and some union leaders resented restrictions
● 15,000 wildcat strikes (unauthorized)
● United Mine Workers denied and struck may 1943
● Congress passed (FDR tried to veto) Smith-Connally Act/War Labor Disputes
Act
○ unions must wait 30 days to strike
○ president authorized to seize war plant
○ public began to dislike unions
○ states pass laws to limit union powers
Labor and employment increased during the war, but in order to maximize production the
government had to impose restrictions on unions.
Stabilizing the Boom
➔ fear of inflation, prices rise 25 percent post PH
➔ Anti-Inflation Act passed Oct 1942
◆ admins ability to freeze agricultural prices
◆ wages, salaries and rents
◆ enforced by Office of Price Administration (OPA)
◆ lead by Leon Henderson and Chester Bowles
◆ not popular, lots of black market and continued high prices
➔ Deficit Spending
◆ 1941-1945 US spends 321 Billion dollars more than past 150 years
◆ debt up from 49 bil to 259 bil
◆ sold 100 bil in bonds to citizens mostly financial institutions
◆ Revenue Act 1942
● 94% rate for highest brackets taxes on low income families
● congress enacts withholding system of payroll deductions in 1943
the rapid change between war time and peacetime caused an array of economic issues
find more resources at oneclass.com
find more resources at oneclass.com
Mobilizing Production
❖ Jan 1942 War Production Board, (WPB) headed by Donald Nelson (apparently not as
good as war industries board (WIB) leader Bernard Baruch)
➢ could not control military purchases
➢ small businesses enraged at most of contracts going to large companies
❖ New office in White House: Office of War Mobilization (OWM) directed by James F.
Brynes OWM a little more successful
❖ new factory complexes funded by Defense Plants corporation
❖ began producing fake rubber
❖ 1944 excess output, 2x other allies
Slow to get started and expensive, the american military production system soon became a
world superpower
Africa Americans and the War
★ 1941 Philip Randolph
○ Pres of mostly black Brotherhood of Sleeping Car Porters
○ insisted gov. make companies w defense contracts to integrate workforce
○ tried to amass a march on washington
○ FDR panics and allows
○ Fair Employment Practices Commission (FEPC)
■ investigate discrimination in war industries
■ limited effectiveness, symbolic victory
★ repeat of great migration
★ racial tensions, June 1943 two day racial tensions 34 dead
★ Congress of Racial Equality (CORE) 1942
○ more resistance
○ Randolph Rustin, James farmer and others organized sit ins and demonstrations
○ forced DC restaurant to serve blacks
★ Pressure for change in military
○ barred from marines and army given trash jobs
○ segregation wasting manpower and public and political pressures, made
changes
○ Fort Dix NJ riots because tensions
Blacks made many symbolic advances and a few actual advances due to shortage of workers
and continued social unrest
Native Americans and the War
❏ 25,000 performed military service
❏ Ira Hayes held American flag at Iwo Jima
❏ code-talkers because different language
❏ Less subsidies from govt
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
15 million men and women off to war. Government focused on preventing inflation and increasing production. No strike" pledge not stop production during war time. Maintenance of membership agreement" automatic enrollment in unions which kept the bodies alive without allowing suspension of production. Rank-and-file members (normals) and some union leaders resented restrictions. United mine workers denied and struck may 1943. Congress passed (fdr tried to veto) smith-connally act/war labor disputes. Unions must wait 30 days to strike. States pass laws to limit union powers. Labor and employment increased during the war, but in order to maximize production the government had to impose restrictions on unions. Fear of inflation, prices rise 25 percent post ph. Enforced by office of price administration (opa) Lead by leon henderson and chester bowles. Not popular, lots of black market and continued high prices. 1941-1945 us spends 321 billion dollars more than past 150 years. Debt up from 49 bil to 259 bil.
