Working Paper: NBER ID: w22590
Authors: Hugh Rockoff
Abstract: During World War II the United States rapidly transformed its economy to cope with a wide range of scarcities, such as shortfalls in the amounts of ocean shipping, aluminum, rubber, and other raw materials needed for the war effort. This paper explores the mobilization to see whether it provides lessons about how the economy could be transformed to meet scarcities produced by climate change or other environmental challenges. It concludes that the success of the United States in overcoming scarcities during World War II without a major deterioration in living standards provides a basis for optimism that environmental challenges can be met, but that the unique political consensus that prevailed during the war limits the practical usefulness of the wartime model.
Keywords: No keywords provided
JEL Codes: N42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Effective government intervention during wartime (H56) | U.S. economy's transformation during WWII (N12) |
| U.S. economy's transformation during WWII (N12) | ability to meet resource scarcities (Q21) |
| Political consensus and government policies during WWII (H56) | U.S. economy's transformation during WWII (N12) |
| Price controls and rationing (D45) | management of demand and supply during the war (H56) |
| Rapid completion of large infrastructure projects during WWII (H54) | potential for similar undertakings today to address environmental issues (F64) |