World War II and the “Crisis” of Small Business: The Smaller War Plants Corporation, 1942–1946

Abstract

On the eve of America's entry into World War II, Senator Joseph O'Mahoney (D-Wyo.) warned that “if we let little business go down in a total effort to defend democracy we shall let the very foundation of democracy perish. The total effort will result in total government.” O'Mahoney was concerned that the growing concentration of defense contracts with large corporations would tie big business to big government and thereby leave small business out of the military buildup. This fear that big business might squeeze small manufacturers out of the war effort fueled demands for government assistance. With the antitrust laws suspended for the duration of the war, congressional small-business advocates took positive action, using crisis rhetoric and the ideological appeal of small business to secure the creation of the Smaller War Plants Corporation (SWPC), the first federal agency to represent small manufacturers.