AMERICAN IMPERIALISM 1890 1919
THE UNITED STATES IN WORLD WAR I
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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
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Because we got a lot of money for winning the war
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Because the war didn’t cost much to begin with
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Because we ended poverty completely
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Detailed explanation-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.
Detailed explanation-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.
Detailed explanation-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.
Detailed explanation-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.