The Impact of World War I on American Capitalism The circumstances surrounding Americas entry into the war - The United States was not prepared to enter conflict and as such Wilson issued a proclamation of neutrality when the war broke out (1914). The US population unanimously wanted to remain neutral, reasons include: 1. To prevent tension: as over 92 million inhabitants were either migrants or migrants' children, many from European nations. American involvement would create internal stress between nationalities 2. Isolationist policy: the US had followed an isolationist policy since 1823 when the Munroe doctrine was issued, causing them to avoid European affairs 3. War was seen by the American people (especially Wilson) as an affront to …show more content…
They were unable to do so right because the British Navy dominated to North Atlantic Ocean and prevented the US from delivering supplies to the Central Powers by declaring commodities (including food) as war commodities. Trade with the Allies increased from $825 million to $3.2 billion. o Loans from the US to the Allies: as the Allies quickly exhausted their funds they had to borrow from the US. By 1917 the Allies had borrowed 2 billion, bringing America closer to the Allies cause. o German submarine warfare: German commanders made plans to prevent goods from the US reaching Britain when the war became a stalemate. They used U-boats (submarines) to stop merchant ships carrying supplies, yet they stopped this because they were vulnerable to the merchant ships guns. Instead the illegally torpedoed the ships without warning. They declared the areas surrounding Britain a war zone and that neutral ships entering the zone would be torpedoed. This caused the sinking of the Lusitania killing 128 American …show more content…
This in turn increased industrialisation within America. - Immigration restriction: as America had experienced the largest immigration movement in history prior to the war the number of immigrants looking for safety during WWI were not greeted warmly, people believed they were stealing jobs etc. and so immigration policies were introduced. - The Red Scare: relates to the belief after WWI that America was going to be overrun by communism because of labour strike and that supported a united social class and wanted capitalism and the wage system to be abolished Wilsons attitudes towards US involvement in world affairs and the failure of the League of Nations and the Treaty of Versailles - Regarding the Treaty of Versailles and the end of the war Wilson believed in a 'peace founded upon honour and justice' and wanted to treat Germany