Letters

Cost plus

When Pearl Harbor was bombed a determined F.D.R. and Congress wanted to strike back quickly and decisively. They needed to build an Army, Navy and Air Force as quickly as possible. Thus, the cost plus program was established. This program gave existing factories and businesses the incentive to switch to producing the machines (planes, vehicles, ships etc.) as quickly as possible. There was no risk for the business world as the plus was a guaranteed profit so there was no chance for them to lose money. The plus contracts varied as to the percentage, depending on delivering early so wo...