List the benefits that the First World War brought to the US economy

by randompeersoon (student)

Joana Chagas 10SJB

List the benefits that the First World War brought to the US economy:

During the economic boom in the 1920’s in the USA, there were many skypscrapers built. Production levels rose, as well as there were new roads built, which in turn created more employment. The stocking industry increased in its production and there were many new aircraft companies, which constrasted with the fact that there were almost no civilian airlines in 1918. Furthermore, urban homes now had access to electricity, although some farms still lacked it.

One of the great advantages the the USA already had was that it was rich in natural resources, which is why it did not need to import a lot of materials. So, US exports increased.

In relation to where the USA stood in terms of the rest of the world, the American industry was the lead industry of the world. Its steel, coal and textile industries were growing quickly and it was the leading oil producer, as well as leading in delevoping new technology. Furthermore, its pharamacology department as well as its film industry were also the most advanced. American products were being sold all over the world. However, farmers were overproducing, which would later on turn into a serious issue.

The First World War brought a lot of business to the USA since they sold a lot of food and weapons, which went towards war efforts in other countries such as the UK and France. So, US profit rose because of this. Due to war and Germany’s submarine warfare, the Allies supplies from its colonies was reduced. The US replaced this gap in trade. Because of the devastation in Germany, the USA took the lead in terms of chemical developments. The explosive industry, as well as the plastic industry improved. This was the time of the USA’s second industrial revolution, which ...

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In relatin to the economy, although the USA lost some money but by 1922 the economy has already stabilized and was growing once more. American companies grew even faster since there were high import tariffs, which is why there was less foreign competitions. Low taxing kept prices low, making US domestic/national economy grow.

How could the Republicans use Sources 11 and 13 to justify their policies?

The Republicans could use the fact that the number of millionaires increased to justify their policies since that showed that there was in increase in the money made by American industries. Also, the increase in the industrial production and the fact that the USA production was rising and above the entire world’s production showed that these policies were working, since they increased production, and therefore profit.

There was a recession due to the First World War from 1921 to 1925. So, less nations were able to import manufactured goods. World economy recuperated, allowing for it to produce a lot more goods and therefore expand its exported goods. That is why there was a slight increase in exports from 1926 to 1930.

In 1921 there were 11.9 million people unemployed in the US, whilst later on in 1929, unemployment went down to 5.2 million people. This shows that the increase in industrial production meant that more workers were needed and although their wages may have gone down, a lot more people were employed.

How could critics of Republican policies use Sources 11 and 13 to attack the Republicans?

Critics of Republican policies could use Source 11 against the Republicans since the average annual industrial wages decreased by over $200, which shows that the people employed earned less although the production and profit of each company was increasing. Furthermore, since there were many millionaires, this shows that all the profit went to higher class memebers of society, whilst lower class citizens which worked hard had their wages decreased. This was quite unfair and could be used to attack the Republicans.