Economics in the Second World War
Mobilizing for War
Apparently, we cannot end wars, even as much as people talk about it. That’s partially because, along with the violence of war, there is also profit. The causes of the Second World War were complicated, like most conflicts. But it’s clear that many of the people in power believed that entering the war would benefit their nation’s economy. It wasn’t just about sending soldiers to fight. All citizens and businesses revolved around the war effort. A total war economy emerged.
A look at the background will help illustrate how various nations had similar economic motives as they mobilized (prepared) for war. For starters, the Great Depression had just caused a global disaster. Germany, still hurting from their defeat in WWI, had been hit especially hard. Adolf Hitler promised to end the economic suffering and humiliation of the German people. Soon his political party rose to power. The economy desperately needed work. To create jobs, Hitler’s government increased military spending. German businesses were given profitable government contracts. One part of Hitler’s plan was to use this new military strength to invade neighboring countries. He’d take resources and industrial goods from those places. These would help his vision of a Greater Germany. Of course, his vision also demanded racial and ethnic “purity.” Anyone who wasn’t white or Christian could be considered “impure.” He called for the removal or genocide of many of the populations of the conquered regions. Some of the people of these countries were also forced to become unpaid laborers—essentially slaves. So too were minority groups within Germany. All worked for the German war machine.
On the other side of the world, Japan was having similar issues. The Depression had caused horrible poverty during this time. Japan had few natural resources. The government was in debt. It aimed to depend less on foreign markets for oil and rubber. So, the Japanese established colonies in Korea and Manchuria to get access to these valuable resources—to use and to sell. The United States did not approve of this takeover. So they embargoed, or blocked, Japan’s oil exports in 1940 to slow their economic plan. Japan sped up plans to attack Indonesia and the Philippines for even more resources. Again, the U.S. responded with severe restrictions. Japan raised the stakes with its attack on Pearl Harbor on December 7, 1941. The action put them at war with the U.S. Japan’s prime minister at the time, General Tojo, also commanded the military. As with Germany, he believed Japan needed a total war economy. Tojo took dramatic steps to achieve it.
Allied powers
The Axis powers—Germany, Italy, and Japan—clearly were mobilizing for war. So the Allies—the U.S., United Kingdom, France, and Soviet Russia—prepared for another global conflict. Soviet Russia, also known as the U.S.S.R., feared German attacks. So during peacetime, they built up their military, just as Germany had done. From 1938 to 1941, Russian leader Joseph Stalin doubled the size of his army to five million troops. To pay for it, all Russian households had to consume less food, fuel and other resources. This would not have gone as smoothly in most nations. But Soviet Russia had a “command economy.” It gave the state control of all industries. The farms and food they produced were controlled by the government. This level of control gave the U.S.S.R. an advantage in mobilizing its resources and industrial labor for war. Most nations struggled to change with the total war economy. However, Russia’s citizens and businesses were already so close to that concept. It was easier for them to join in.
The economy in the United States was another story. Its goals had clearly shifted even before the U.S. actively entered the war in December of 1941. That month Japan attacked the U.S. air base Pearl Harbor. President Roosevelt had helped create the Lend-Lease program months earlier. This allowed the U.S. to supply warships, planes, and guns (and food for civilians) to help the Allied nations. It meant that long before officially joining the fight, the U.S. was already participating. The Lend-Lease program aimed to make the United States into what Roosevelt called “the great arsenal of democracy.”
Total war economy
When the Japanese bombed Pearl Harbor, the U.S. declared war on both Japan and Germany. As with so many other nations, it was not just about sending soldiers and weapons. The U.S. wanted all of its citizens to move toward a total war economy. The government gave money to private companies that transformed their manufacturing plants. Soon they were centers of production for weapons, airplanes, and ships. All citizens were asked to ration, or carefully control, their use of certain resources. They supported the war effort by collecting scraps of rubber, paper, and metals. Every person was asked to pitch in for the cause.
Before the war, the U.S. economy was like most other countries: trying to rebuild from the Depression. Suddenly, it was doing great. Production sped up. New factories were built and closed factories reopened. Millions of jobs were created in both private business and the government. Tanks began to roll out of car factories. Assembly lines that used to make vacuums and kitchen appliances started making bombs. To keep the economy stable, the government controlled both wages and prices. Millions of men went off to war in Europe and the Pacific. Meanwhile, housewives, students, and retired people took up the jobs they left behind. Two-thirds of the American economy became part of the war effort by the end of 1943. Unemployment dropped to record lows. Even scientists, such as physicists and chemists, expanded their research. They developed new weapons and technologies that might give the U.S. military a greater advantage. One result of this was the Manhattan Project. It produced the first nuclear weapons.
Over in the United Kingdom and Canada, similar economic changes were made to meet the needs of war. The food shortage was even worse for the British than the people in the U.S. Rationing became essential. Britain also relied on Canada for dairy and meat products. So even though Canada started producing much more food during the war, Canadians still had to ration their own use of it. This was so they could keep feeding British citizens, who desperately needed more resources.
Within the U.K. there was also a desperate need for farm labor. It brought tens of thousands of British women from the cities to rural areas to serve as “land girls.” Rural areas were safer places to be anyway. The Germans were targeting cities. That’s why hundreds of thousands of children were also moved to rural areas of the island for safety. In total, more than 450,000 British civilians lost their lives.
The empire advantage
The United Kingdom controlled the world’s largest empire. The U.K. used its influence to help in the fight. During the war, the U.K. imported oil for military use from Persia, Iraq, and North America. Over 15 million subjects joined the British forces in the Allied fight against the Axis Powers. Beyond soldiers, members of the empire had skilled people, provisions, industrial materials, and natural resources that Britain needed. This network of support stretched from Australia to the Caribbean, from East Africa to India. Britain’s ability to mobilize this huge military- industrial capacity is a major part of how they survived the war.
In India alone, over 2.5 million subjects were forced to fight the war in various African, Asian, and European countries. Over 150,000 non-British subjects gave their lives for the British Empire. At the time, too, political leaders in Africa and in India were already organizing movements to free themselves from British rule. Wartime disruptions had caused severe food shortages. They led to a famine that killed hundreds of thousands there. On various global battlefields, the Indian subcontinent sacrificed 87,000 soldiers. The economic and human costs of war were unbearably high for millions more colonial people who were wounded, widowed, and orphaned.
Conclusion
It’s impossible to argue with the old saying: “War is hell.” In the paragraphs above, we’ve only seen part of the death toll of the Second World War. We have not mentioned the genocide of Jewish people, the bombings of Hiroshima and Nagasaki, and the many other horrors of this massive war. Economics, on its own, does not sound like a violent topic. Yet we see countless examples in this war and others that aiming for economic growth can leave terrible devastation in its wake.
Sources
Allen, Michael Thad. The Business of Genocide. Chapel Hill, NC: University of North Carolina Press, 2002.
Braun, Adee. “Turning Bacon into Bombs: The American Fat Salvage Committee.” The Atlantic, April 18, 2014. https://www.theatlantic.com/health/archive/2014/04/reluctantly-turning-bacon-into-bombs-during-world-war-ii/360298/
Kennedy, David M. “The Great Depression and World War II, 1929-1945.” The Gilder Lehrman Institute of American History, n.d. https://www.gilderlehrman.org/history-resources/essays/great-depression-and-world-war-ii-1929-1945
Mosby, Ian. (2019). “Food on the Home Front during the Second World War.” Wartime Canada, 2019. https://wartimecanada.ca/essay/eating/food-home-front-during-second-world-war
Tassava, Christopher J. “The American Economy during World War II.” Economic History Association, n.d. https://eh.net/encyclopedia/the-american-economy-during-world-war-ii/
“Research Starters: Worldwide Deaths in World War II.” (n.d.). The National WWII Museum, New Orleans, n.d.
https://www.nationalww2museum.org/students-teachers/student-resources/research-starters/research-starters-worldwide-deaths-world-war
Roland, Charles G. “Scenes of Hunger and Starvation.” Courage Under Siege: Disease, Starvation and Death in the Warsaw Ghetto. New York: Oxford University Press, 99-104, 1992.
Whitney Howarth
Whitney Howarth, is an Associate Professor of History at Plymouth State University where she specializes in modern world history and the history of India. Dr. Howarth has taught world history at the college level since 1999 and was, for nearly a decade, a research fellow at Northeastern’s World History Center, where she assisted in the research, design and creation of professional development programs for high school world history teachers, hosted seminars by top world historical scholars, and produced multi-media publications (1995-2004).
Image Credits
This work is licensed under CC BY 4.0 except for the following:
Cover: The British Commonwealth of Nations - together. U.S. National Archives and Records Administration. https://commons.wikimedia.org/wiki/File:The_British_Commonwealth_of_Nations_-_together_44-pf-437-2016-001-ac.jpg
Forced laborers in German-occupied Lithuania. Bild Bundesarchiv, CC BY-SA 3.0. https://commons.wikimedia.org/wiki/File:Bundesarchiv_Bild_146-1994-090-06A,_Lettland,_Riga,_Frauen_auf_Weg_zum_Arbeitseinsatz.jpg
Children in a bombed-out British school eating food from the US sent as part of the lend-lease program. By Ministry of Information Photo Division Photographer, public domain. https://commons.wikimedia.org/wiki/File:Aid_From_America-_Lend-lease_Food,_London,_England,_1941_D4322.jpg
A poster advertising Canada’s contribution to the British war effort, public domain. https://commons.wikimedia.org/wiki/File:The_Empire%27s_Strength_-_Do_You_Know_That_Canada..._Art.IWMPST16003.jpg
Articles leveled by Newsela have been adjusted along several dimensions of text complexity including sentence structure, vocabulary and organization. The number followed by L indicates the Lexile measure of the article. For more information on Lexile measures and how they correspond to grade levels: www.lexile.com/educators/understanding-lexile-measures/
To learn more about Newsela, visit www.newsela.com/about.
The Lexile® Framework for Reading evaluates reading ability and text complexity on the same developmental scale. Unlike other measurement systems, the Lexile Framework determines reading ability based on actual assessments, rather than generalized age or grade levels. Recognized as the standard for matching readers with texts, tens of millions of students worldwide receive a Lexile measure that helps them find targeted readings from the more than 100 million articles, books and websites that have been measured. Lexile measures connect learners of all ages with resources at the right level of challenge and monitors their progress toward state and national proficiency standards. More information about the Lexile® Framework can be found at www.Lexile.com.