In 1940, the American economy remained mired in the depression. Nearly one worker in seven was still unemployed, factories operated far below their productive capacity, and the total federal budget was less than $10 billion. Shortly after the attack on Pearl Harbor, Roosevelt announced the goal of converting the economy to produce “overwhelming . . . , crushing superiority of equipment in any theater of the world war.” Factories were converted to assembling tanks and airplanes, and production soared to record levels. By the end of the war, jobs exceeded workers, plants operated at full capacity, and the federal budget topped $100 billion.

To organize and oversee this tidal wave of military production, Roosevelt called upon business leaders to come to Washington and, for the token payment of a dollar a year, head new government agencies such as the War Production Board, which set production priorities and pushed for maximum output. Contracts flowed to large corporations, often on a basis that guaranteed their profits. During the first half of 1942, the government issued contracts worth more than the entire gross national product in 1941.

Booming wartime employment swelled union membership. To speed production, the government asked unions to pledge not to strike. Despite the relentless pace of work, union members mostly kept their no-strike pledge, with the important exception of members of the United Mine Workers, who walked out of the coal mines in 1943, demanding a pay hike and earning the enmity of many Americans.

Overall, conversion to war production achieved Roosevelt’s ambitious goal of “crushing superiority” in military goods. At a total cost of $304 billion during the war, the nation produced an avalanche of military equipment, more than double the combined production of Germany, Japan, and Italy (Figure 25.1). This outpouring of military goods supplied not only U.S. forces but also America’s allies, giving tangible meaning to Roosevelt’s pledge to make America the “arsenal of democracy.”