To: koan who wrote (7661 ) 4/26/2009 3:54:13 PM From: Brumar89 Read Replies (2) | Respond to Immediately? Unemployment in 1938 was 19%.The government began heavy military spending in 1940, and started drafting millions of young men that year;[20] by 1945, 17 million had entered service to their country. But that was not enough to absorb all the unemployed. During the war, the government subsidized wages through cost-plus contracts. Government contractors were paid in full for their costs, plus a certain percentage profit margin. That meant the more wages a person was paid the higher the company profits since the government would cover them plus a percentage.[21] Using these cost-plus contracts in 1941-1943, factories hired hundreds of thousands of unskilled workers and trained them, at government expense. The military's own training programs concentrated on teaching technical skills involving machinery, engines, electronics and radio, preparing soldiers and sailors for the post-war economy.[22] en.wikipedia.org
