USA HISTORY

AMERICAN IMPERIALISM(1890 1919)

THE UNITED STATES IN WORLD WAR I

[SOURCES]
Why did the United States economy boom after WWI?

(A) ** Because a lot of European nations had borrowed money from the US during the war so when the war ended their repayments helped our economy

(B) Because we got a lot of money for winning the war

(C) Because the war didn’t cost much to begin with

(D) Because we ended poverty completely

EXPLANATIONS BELOW

Concept note-1: -US banks loaned money to Europe and businesses sold much needed goods. The war also provided a stimulus for inventions in production, materials and advertising. Immediately after the war there was a small slump but from 1922 the USA experienced an unprecedented economic boom.

Concept note-2: -Stock prices collapsed first, by the end of 1919. The downturn in wholesale prices came 6 months later. By the autumn of 1920 a severe industrial depression had developed. Factory employment dropped 30 percent from March 1920 to July 1921.

Concept note-3: -A housing boom, stimulated in part by easily affordable mortgages for returning servicemen, fueled the expansion. The rise in defense spending as the Cold War escalated also played a part. After 1945 the major corporations in America grew even larger.

Concept note-4: -The economy was mired in recession in 1914 and war quickly opened up new markets for American manufacturers. In the end, World War I set off a 44-month period of growth for the United States and solidified its power in the world economy.