America during WW1

School 2086

Kuranova Ksenia

Natalia Evgenievna Borodina

The economy of war

2016

Is there any good in war and is it possible to get benefits from it?

I was always very interested in how, such a destructive force as war, can bring any positive influence on a country. So, I would like to prove a hypothesis, which sounds like: " War is profitable for economic, political and social life of society".

A great example of how country can magnify its power due to hostilities is America in WW1. During my work I expect to learn more about country and its history. I believe, that this work will help me to improve my knowledge and broaden my horizon.

America before the war

WW1 (1914-1918) was one of the most ruinous wars in human history. The reasons for the war were contradictions between European countries.

So, at the beginning of the war two biggest coalitions formed: Entente and Triple Alliance. As for America, it has long remained neutral, but towards the end joined Entente.

Before the war America was the most developed country in the world. It had had two industrial revolutions, which allowed it to increase factory and agriculture production and the wealth of citizens.

The average annual income of Americans increased by 75% and salaries were higher than in any countries of Europe.

The rate of economic growth hit an all-time high level. But the situation got worse after the severe crises in 1893-1897 and 1907.

Economic changes

America's economy before WW1 wasn't destroyed by hostilities.

The country supplied weapons, food, raw goods and gave loans to Europe. America also successfully solved the problem of its debt in amount of 7,2 billion dollars and gradually turned from a debtor to international creditor.

After the war country produced 50% of coal, 70% oil in the world and did not stop supplying Europe.

But to cover the costs of military government increased taxes by 5.7 times, and began to actively intervene in economy.

Rapid development transformed America into industrial and commercial leader in the world, but made vulnerable to crises.

Political changes

After the war, President Woodrow Wilson, proposed his plan for global regulation "14 points". Central position there was about establishment of the League of Nations, where America would be leader. This plan was especially benefited to the country.

But after unsuccessful attempt to enter America into the League of Nations, Woodrow Wilson had to leave his post because of unpopularity. He was replaced by republican Warren Harding, who promised, that he'll return a country to "normal life".

After the war in 1920, at the same time, were accepted 2 amendments to Constitution. The first one was about prohibition on alcohol (18th) and the second one permitted women's suffrage (19th) .

Accordingly, taking into account the views of women, politicians were forced to change their political programs.

Social changes

American social life significantly changed after WW1. Ordinary people, who participated in hostilities, were shocked by its consequences . They did not want to return home and stayed in Europe. At the same time many workers were discontented by conditions of working, they staged massive strikes and required to increase the wages.

The mood of people was absolutely different from the country's economic prosperity.

In my opinion the result of the war was largely positive for America, but of course, I cant say that it was absolutely positive.

America, as a member of the war, also suffered losses. For instance it lost one hundred and four thousand people, but in comparison with Germany, which lost two million people, this number is not so big

American economy began rapid increase, supplies to Europe did not stop. The level of crimes decreased by 70% after the 18th amendment.

So, according to the text, I think that my hypothesis is true in general and America during WW1 is not the only one example, which can prove it.

The List of references:

1. The world after WW1 (R.R.Husainof lecture) http://husain-off.ru/hb2n/h2lekc15.html

2. USA in WW1 http://engtime.ru/ssha/ssha-v-pervoi-mirovoi-voine

3. USA history (1918-1945)

https://ru.wikipedia.org/wiki/%D0%98%D1%81%D1%82%D0%BE%D1%80%D0%B8%D1%8F_%D0%A1%D0%A8%D0%90_(1918%E2%80%941945)

4. "Economic history: genesis of market economy" (R.Tolmacheva)

http://www.gumer.info/bibliotek_Buks/Econom/tolm/06.php