Victory Gardens and Rationing

In 1942, the Office of Price Administration (OPA) established ten major rationing programs. At the same time, shortages in still exempt goods drove their prices up, encouraging hoarding, and fueling a vicious cycle that led to more rationing. Most Americans were extremely unhappy with the administration’s necessary rationing programs and higher taxes. The rationing system provided consumers with coupons at prices that the OPA had fixed, which were required for the purchase of certain goods, and included meat, shoes, fats, coffee, and many others. Dealers were not permitted to restock their supplies until they provided all of the coupons from sales that were made. The number of coupons allowed for each family was determined by a local rationing board. Nearly everyone affected by the rations was unsatisfied with their position, including producers and vendors who claimed prices were set too low. Families also felt that they were subject to unequal judgment from a board in their community.

During 1942, government spending was channeling money to consumers through industrial wages. At the same time, war production continually reduced the supply of consumer goods, increasing the gap between demand and supply to $17 billion that year. In January 1942, under pressure from President Roosevelt, Congress authorized the OPA to set maximum prices. In April, Leon Henderson, who was head of the OPA at the time, issued the General Maximum Price Regulation, which ordered a freeze on all retail prices at their highest levels which had been reached in March. This ruling was very difficult to enforce, as the quality of many products worsened while their prices were forced to remain the same. At the same time, black markets for these products thrived. In October, Congress passed the Price Control Act, which allowed for more price Control, as well as the control of wages. Although this act limited inflation, it was not enough to close the enormous gap that already troubled the economy. -Leslie P.