I. The government-business partnership thereby created succeeded in doubling output between 1939 and 1945 (Holt 117). Ferrell said "after Pearl Harbor, American industry produced in 'miraculous' fashion, unlike World War I, enough to equip its own armed forces and its Allies" (235). In the 1920s the United States reverted to a largely laissez-faire economy; however, government intervention in the economy, despite some changes, remained in force after 1945.
High WW I demand for food was followed in the 1920s by a collapse in agricultural prices and a 40 per cent decline in net
farm income 1919-1930 (Hughes 472). The Allies borrowed $11.2 billion. Non-payment of their war debts which were in turn tied to German reparations payments proved to be a house of cards after the Wall Street crash of 1929. This risk was avoided during WW II by President Franklin Roosevelt's decision to use $50 billion in Len
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