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World War II and the Postwar Period The nation's "economic troubles finally began to ease. at the start of World War II. Unfortunately, economic problems were replaced by wartime fears-War production meant Uncle Sam was the principal consumer of goods. Industries modified their facilities to produce tanks, weapons, tools, military clothing, airplanes, ships, and other wartime equipment. The government's total wartime expenditure (1941-45) was about $347 billion. As a result, such consumer goods as shoes, tires, clothing, gasoline, and meat became scarce and were rationed. The end of World War II brought renewed fears of depression. But these-fears were unfounded. The economy continued to expand because of: • A pent-up demand for consumer goods, resulting from wartime limits on consumption. • Built-up purchasing power resulting from individual savings during the war. Much of the wartime saving was forced on people by the government. At one point, the government deducted 10 percent of a person's wage and put it into Series E government bonds. • Plant and equipment expansions created by the war. » An efficient and ready-to-work labor force. • The population explosion during the 10 years following the war. » The emergence of new or modernized industries and processes: natural gas, plastics, electronics, data processing, aluminum, and aeronautics. (未完待续)
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