How did mobilizing for World War I change the United States' economy and its relationship to government? Which of these changes, if any, spilled over...

American
mobilization forhad an impact on state
spending on procurement, with the federal government
beginning to employ an
ever-larger labor force and invest greater sums of money in the private

sector for the acquisition of weapons and munitions.

In terms of
labor,
during the four-year time period 1914 to 1918, more than 3.5 million
people were added to
military and civil service payrolls. The scale of this
personnel upsurge can be seen in the
change in unemployment during this
period, which dropped from 7.9 percent to 1.4
percent.

Government spending also increased dramatically, marking a

previously unseen level of central influence in the national economy. The cost of World
War I to
the United States' economy was 52 percent of gross national product,
most of which came through
federal appropriations. This was financed, in
part, by an increase in the individual tax rate
for high-income earners from
1.5 to 18 percent.

While the end of the war saw

downsizing of the military...

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