Impact of the first world war on the power of the federal government

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  • Impact of the First World War on the power of the Federal government
    • Economy
      • Government spending increased by 10%
        • This meant the government was now more entitled to have a say on what happened to the economy
      • Liberty bonds were created
        • More people than ever had a financial connection to the government that now controlled $21 billion of public money
      • Major industries were nationalised  such as the railways to make them more efficient in wartime
        • The Federal government employed more people than ever, the prewar amount of federal government workers was less than 1% of the total workforce
      • The government controlled the markets in natural resources and raw materials
        • The federal government could now influence the prices and make profits on the taxes of the goods
    • Social
      • The sedition act was introduced
        • People were no longer allowed to discourage the purchasing of war bonds or the joining of the military
          • 1500 people were imprisoned as a result of the act
      • The Espionage Act was introduced
        • The government could now censor newspapers and texts and prevented people publicaly protesting against the war
      • The war influenced prohibition
        • People saw the use of grain for brewing as a waste and also though it was supporting breweries of German descent

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