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Cash and Carry Policy
The Cash and Carry Policy was established by president Franklin Delano Roosevelt during WWII. This allowed the sale of materials to militant countries, as long as those receiving have arranged the transportation and are willing to pay immediately in cash. The purpose for the Carry and Cash Policy was to ensure a sense of neutrality between the United States and European countries while still giving aid to Britain. This policy helped create more manufacturing jobs. -
The Office of Price Administration
The Office of Price Administration (OPA) was established on August 28, 1941. The point of the OPA was to control money (price controls) and rents after the outbreak of World War II. Later that year, the administration merged with Price Stabilization Divisions to become the Office of Price Administration and Civilian Supply (OPACS). The OPA had the power to place maximums on prices and and keep the amount of goods in the U.S. equally distributed. -
War Bonds
The United States issued war bonds during World War II, when full employment collided with rationing, and war bonds were seen as a way to remove money from circulation as well as reduce inflation.Issued by the U.S. Government, they were first called Defense Bonds. The name was changed to War Bonds after the Japanese attack on Pearl Harbor, December 7, 1941. -
Attack on Pearl Harbor
The surprise attack on Pearl Harbor (America's large naval base in Hawaii) by the Japanese provoked the United States to enter World War II. After two hours of bombing, more than 2,400 Americans were dead and 21 ships were either damaged or had been sunk. The U.S. declared war on Japan the following day. This caused a lot of the governments money to go toward the war and other foreign funds rather than America's economy. -
Rosie the Riveter
In 1942, the concept of Rosie the Riveter was created to lead more women into the workforce during World War II. Most men were out at war and it caused a loss of employees in the economy. It started with a song called "Rosie the Riveter" which was covered by many artists, and then later that year, the infamous "Rosie the Riveter: You Can Do It!" poster was created. "Rosie the Riveter" inspired a social movement that increased the number of working American women from 12 million to 20 million. -
Income Tax
On this date, the U.S. government begins directly withholding income tax from wages from all Americans. Instead of making one large payment at the end of the year, taxes would be taken out as the money was earned. This took even more money from the little paychecks civilians were recieving. Also, a lot of the money taken as income tax wasn't given back to the civilians in benefits but given towards the World War II efforts. -
D-Day
160,000 Allied troops landed along a 50-mile stretch French coastline to fight Nazi Germany on the beaches of Normandy, France. General Dwight D. Eisenhower called the operation a crusade in which “we will accept nothing less than full victory.” More than 5,000 Ships and 13,000 aircraft supported the D-Day invasion. More than 9,000 troops were wounded. The invasion tied up a large amount of money within the U.S. casuing us to go further into debt. -
International Monetary Fund
Also know as the IMF, it's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries to transact with one other. This system is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty. This was created to prevent having another Great Depression. -
The Marshall Plan
To begin economic reconstruction between the Allies after WWII, the Economic Cooperation Act of 1948 (Marshall Plan) was implemented. The United States included the former enemies, Germany and Italy, in its plan — thereby preventing another economic depression of 1929. The Marshall Plan also laid the foundation for the North Atlantic Treaty Organization (NATO) and the eventual unification of European countries (European Economic Union).
