"Hitler also missed the point completely about American economic capabilities, for the cars and the refrigerators he sneered at were being produced by corporations that led the world in techniques of mass production and modern management. The Axis leaders deluded themselves into believing that, with the Great Depression, the American economic model had disintegrated. Yet despite the sluggish growth of aggregate demand in the mid to late 1930s, firms like General Motors were taking tremendous strides forward in efficiency, exploiting those economies of scale that were unique to the huge American market. Exports to Britain and the Soviet Union had given GM and its peers a foretaste of what was to come. With the American entry into the war, they were inundated with government orders for military hardware. In the First World War, the result had been a mess: production bottlenecks, chronic waste and inflationary pressure. In 1942 the opposite happened. 'The real news,' as Charles E. Wilson of General Motors put it, 'is that our American methods of production, our know-how about the business, could be applied to mass production of all these war things . . . and that is the one factor that I think our Axis enemies overlooked.' Here, too, a compromise was involved. With astonishing speed the big corporations converted themselves from the champions of a consumer society to the servants of a command economy. As John Hancock and Bernard Baruch observed: 'With the coming of war a sort of totalitarianism is asserted. The government tells each business what it is to contribute to the war program.'"
Corporations

January 1, 1970