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The Leaders
The United States was economically hobbled at the dawn of the Second World War. Many were still devastated by the effects of the Great Depression, and unemployment was at 17.2% in 1939. It would take some convincing to get this tired nation to rally to war.
Militarily, the US had the 17th largest army in the world—right behind Romania. If we were to go to war, it would require an upending of the nation as we knew it. -
When Germany invaded Poland on September 1, 1939, the United States had fewer than 200,000 troops at its disposal. Meanwhile, the German Wehrmacht had 4.7 million troops in service when the war began.
Three days after Hitler launched his assault, President Roosevelt met with his advisors. The Army’s Chief of Staff, General George Marshall, urged the President to immediately begin preparing for war. -
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On May 16, 1940, the President proclaimed to Congress: "I should like to see this nation geared up to the ability to turn out at least 50,000 planes a year." While isolationists scoffed, Roosevelt actively sought an industrial leader who could head the monumental mobilization effort needed. He turned to Bernard Baruch, who performed the task during WWI. Baruch praised and recommended forward-thinking auto producer William Knudsen.
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Roosevelt phoned Knudsen, then CEO of General Motors, a couple of weeks after his plea to Congress. Knudsen swiftly resigned his post, forfeited his six-figure salary, and joined FDR's National Defense Advisory Council—becoming the first of approximately 300 industrial corporate executives (frequently referred to as "The Dollar-a-Year Men") to agree to be paid a dollar a year by the federal government.
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By October 1940, Knudsen had overseen the awarding of 920 military contracts valued at more than $9 billion. Approximately 500 companies agreed to make everything from ships to tanks to gunpowder to ammonia; development of 784 new factories was soon under way.
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While polls showed that most Americans wanted to stay out of the war, the President delivered what became known as his "Arsenal of Democracy" speech on December 29, 1940, passionately claiming that every man, woman, and child had a contribution to make in defense of the democratic ideal.
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His appeal was successful, and Congress passed the Lend-Lease Act three months later. Under it, American war materials streamed into Britain. The "Arsenal of Democracy" had begun.
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