Notable Point ยท 49:20-50:11

Precautionary overordering and wartime coordination

Ordering extra material against possible shortages could make aggregate demand harder to manage across wartime producers.

Notes

Precautionary overordering may have compounded American wartime supply problems. Buyers anticipating shortages could order more than the available production could satisfy. Better coordination is recalled as a way of reducing this behavior. The shipyards were all supplying the same navy, whose objective was to complete the whole programme. Tank and aircraft production may also have faced similar coordination problems.