In 4-5 sentences, describe how the U.S. government managed the economy during World War I and the economic effects of that management. Consider the roles played by the Food Administration, the War Industries Board (WIB), and the War Labor Board.
During World War I, the U.S. government managed the economy by creating various agencies and boards to regulate production, labor, and resources. The Food Administration, headed by Herbert Hoover, implemented measures to ensure food supplies for troops and civilians, such as food conservation and price controls. The War Industries Board (WIB) oversaw production and distribution of war materials, ensuring efficient resource allocation. The War Labor Board mediated disputes between labor and management, striving to maintain productivity and prevent strikes.
Overall, the government's management of the economy during WWI led to increased production and employment as industries shifted towards war-related output. However, these measures also resulted in inflation, shortages of consumer goods, and labor unrest as workers demanded better wages and working conditions. Despite the economic challenges, the government's intervention ultimately supported the war effort and helped to mobilize the economy for wartime production.