President Franklin D. Roosevelt placed the Great Depression at the top of his “to-do” list when he was inaugurated in 1933. He quickly took strong measures, creating government agencies to address economic problems and put the country back on a secure financial footing.
As Europe fell once again into war, Roosevelt proclaimed that the United States would remain neutral. Nevertheless, he quietly began preparing for military involvement, should it become necessary. He declared a state of national emergency, increased the size of the National Guard, and in September 1940, authorized the first peacetime draft.
When Japan attacked Pearl Harbor on December 7, 1941, the United States military was somewhat prepared for the conflict, thanks to Roosevelt’s foresight. But the war effort wasn’t the only challenge facing the country. Roosevelt was concerned that the war could undo the progress that had pulled Americans out of the depths of the Great Depression.
On this date in 1942, Roosevelt established the Office of Economic Stabilization. This office wasn’t intended to actively intervene in the economy. Instead, it was created to resolve disputes between agencies and establish policies on wages, salaries, prices, rents, and profits. The new department coordinated the work of the Office of Price Administration and the National War Labor Board.
North Dakota had suffered through the Depression along with the rest of the country, but also faced the added challenge of severe drought, which pushed many farmers into bankruptcy. According to one estimate, seventy percent of North Dakotans required public assistance. The state struggled through the Depression, leaving behind a trail of hardship and broken dreams.
But a favorable turn in the weather in the early 1940s, combined with increased demand for agricultural products driven by the war, helped ease the pressure on North Dakotans and sparked a financial recovery.
By 1942, the country was accustomed to President Roosevelt’s strong hand in the economy. North Dakotans took support for the war effort seriously and didn’t object to a government agency regulating wages and controlling prices. The focus was on winning the war and supporting the nearly 60,000 North Dakotans who had signed up to serve in the armed forces.
Dakota Datebook written by Dr. Carole Butcher
Sources:
- NISEI Veterans Legacy. “US Prepares for Involvement in World War II.” https://www.nvlchawaii.org/us-prepares-involvement-world-war-ii/Accessed 9/5/2025.
- Academic. “Office of Economic Stabilization.” https://roosevelt.en-academic.com/497/Office_Of_Economic_StabilizationAccessed 9/5/2025.
- Filson Historical. “The Most Hated Man in America.” https://filsonhistorical.org/wp-content/uploads/publicationpdfs/68-2-4_The-Most-Hated-Man-in-America-Fred-Vinson-and-the-Office-of-Economic-Stabilization_Hedlund-Richard.pdfAccessed 9/5/2025.
- Historical Society of North Dakota. “The Great Depression.” https://www.history.nd.gov/ndhistory/depression.htmlAccessed 9/5/2025.
- ND Studies. “Farms Prosper, 1940s.” https://www.ndstudies.gov/gr4/north-dakota-agriculture/part-1-north-dakota-agriculture/section-16-farms-prosper-1940sAccessed 9/5/2025.
