Final answer:
The American production of goods and supplies has had a profound effect on the domestic economy, leading to industrialization, increased employment, and a higher standard of living. However, the decline in America's share of global manufacturing sparked concerns about the domestic job market and military readiness.
Step-by-step explanation:
Impact of American Production Domestically
The American production of goods and supplies has historically played a significant role in shaping the domestic economy and societal landscape of the United States. In the era following the War of 1812, there was a notable shift from exporting raw materials to focusing on domestic industrialization, with the Northeast becoming a manufacturing center. This development created homegrown markets for raw materials and facilitated the emergence of American-manufactured goods for consumers.
During wartime, especially World War II, the rapid conversion of factories to meet the demands of war significantly boosted employment rates—dropping from 15% unemployment in 1939 to 1% in 1943—and led to productivity gains of nearly 100 percent. The American production capability, particularly during World War II, contributed to military success and the implementation of programs like Lend-Lease, evidencing the global influence of U.S. manufacturing output.
However, the rise of globalization has seen a shift, with American production declining from 40% of world goods and services in 1950 to 25% in the 1970s, raising concerns about the domestic job market and the military implications of a reduced manufacturing base. Nevertheless, the era of high American production brought about a general increase in Gross National Product (GNP) and a higher standard of living, although prosperity was not evenly distributed among all Americans.