After initial snarls and never-ending disputes, by the beginning of 1944 production was reaching astronomical totals—double those of all the enemy countries combined. Hailed at the time as a production miracle, this increase was about equal to what the country would have produced in peacetime, assuming full employment. War production might have risen even higher if regulation of civilian consumption and industry had been stricter.
Scientists, under the direction of the Office of Scientific Research and Development, played a more important role in production than in any previous war, making gains in rocketry, radar and sonar, and other areas. Among the new inventions was the proximity fuze, which contained a tiny radio that detonated an artillery shell in the vicinity of its target, making a direct hit unnecessary. Of greatest importance was the atomic bomb, developed by scientists in secrecy and first tested on July 6, 1945.
Financing the war
The total cost of the war to the federal government between 1941 and 1945 was about $321,000,000,000 (10 times as much as World War I). Taxes paid 41 percent of the cost, less than Roosevelt requested but more than the World War I figure of 33 percent. The remainder was financed by borrowing from financial institutions, an expensive method but one that Congress preferred over the alternatives of raising taxes even higher or making war bond purchases compulsory. In consequence the national debt increased fivefold, amounting to $259,000,000,000 in 1945. The Revenue Act of 1942 revolutionized the tax structure by increasing the number who paid income taxes from 13,000,000 to 50,000,000. At the same time, through taxes on excess profits and other sources of income, the rich were made to bear a larger part of the burden, making this the only period in modern history when wealth was significantly redistributed.
Social consequences of the war
Despite the vast number of men and women in uniform, civilian employment rose from 46,000,000 in 1940 to more than 53,000,000 in 1945. The pool of unemployed men dried up in 1943, and further employment increases consisted of women, minorities, and over- or underage males. These were not enough to meet all needs, and by the end of the year a manpower shortage had developed.
One result of this shortage was that blacks made significant social and economic progress. Although the armed forces continued to practice segregation, as did Red Cross blood banks, Roosevelt, under pressure from blacks, who were outraged by the refusal of defense industries to integrate their labour forces, signed Executive Order 8802 on June 25, 1941. It prohibited racial discrimination in job training programs and by defense contractors and established a Fair Employment Practices Committee to insure compliance. By the end of 1944 nearly 2,000,000 blacks were at work in defense industries. As black contributions to the military and industry increased, so did their demands for equality. This sometimes led to racial hostilities, as on June 20, 1943, when mobs of whites invaded the black section of Detroit. Nevertheless, the gains offset the losses. Lynching virtually died out, several states outlawed discriminatory voting practices, and others adopted fair employment laws.