"The War Industries Board, as created by executive order, was tasked with directing the purchase of all war supplies, coordinating the work of various industries, and standardizing product designs to maximize efficiency. Through its authority, the board set production quotas, allocated raw materials, and in some cases, fixed prices to ensure that the military’s needs were met before consumer demands."
—Summary of the War Industries Board functions, 1918
The government actions described in the excerpt most directly reflected which of the following shifts in the relationship between the federal government and the economy?
- The expansion of federal power to coordinate resources and regulate industrial production for the war effort.Answer
- BA return to strict nineteenth-century laissez-faire policies to incentivize production through unregulated private enterprise.
- CThe implementation of Populist Party demands to permanently nationalize all heavy manufacturing and transportation.
- DThe creation of permanent welfare state programs designed to address long-term wealth inequality.
Answer
The government actions described in the excerpt most directly reflected the expansion of federal power to coordinate resources and regulate industrial production for the war effort.
The correct option is correct because the War Industries Board (WIB) was a central agency established during World War I to expand the federal government's control over industrial production. By setting production quotas, allocating raw materials, and fixing prices, the federal government temporarily restructured the American economy to prioritize the military's needs over civilian consumer goods.
Step-by-Step Solution
Key Concept
World War I Economic Mobilization