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Extra info for Macroeconomics (9th Edition)
The stage had been set by the late-19th-century industrialists. At the turn of the 20th century, we were on the threshold of the automobile age (see the box titled “The Development of the Automobile Industry”). The Wright brothers would soon be flying their plane at Kitty Hawk, but commercial aviation was still a few decades away. American technological progress—or, if the South can forgive me, Yankee ingenuity— runs the gamut from the agricultural implements previously mentioned to the telegraph, the telephone, the radio, the TV, and the computer.
For the first time in our history, we fought a war that required a total national effort. Although the Civil War had caused tremendous casualties and had set the South back economically for generations, we had never before fought a war that consumed nearly half of our nation’s total output. At the peak of the war, more than 12 million men and women were mobilized and, not coincidentally, the unemployment rate was below 2 percent. Women, whose place was supposedly in the home, flocked to the workplace to replace the men who had gone off to war.
Essentially our production of ships, tanks, planes, artillery pieces, and other war matériel overwhelmed the production of the Germans and the Japanese. Globally, we were certainly at the top of our game. With just 7 percent of the world’s population, we accounted for half the world’s manufacturing output, as well as 80 percent of its cars and 62 percent of its oil. Our potential rivals, Japan, Germany, France, and the United Kingdom, would need at least 15 years to repair their war-damaged industrial plant and begin competing again in world markets.