The USA in the First World War

How did the First World War affect the USA?

America didn't join the First World War until 1917, but the war was to have a massive social and economic impact. America experienced benefits as well as problems as a result of the war.

What was the American economy like before the USA joined the First World War?

Before the First World War, American industry was thriving. By 1900 it was competing with other industrialised countries to produce and sell the most lucrative goods, such as oil, coal and textiles.

When did the USA join the First World War?

America joined the First World War on 6th April, 1917.

Why did America join the Allies in the First World War in 1917?

The USA avoided taking sides when the First World War broke out in 1914. However, it was pushed to ally with Britain and France in 1917 following 4 key events:

• ❖ After war broke out, America began lending money to Britain and France, and selling them more goods than it sold to Germany.
• ❖ Public opinion in the USA was strong against reported German atrocities in Belgium.
• ❖ German U-boats began to attack and sink American ships, including the passenger ship Lusitania in 1915.
• ❖ In 1917, a secret telegram revealed a German plot to use Mexico against the USA, which lead to the outbreak of war.

Why did the First World War benefit America?

European countries in the war couldn't produce as many goods, so they sold less and bought more. Because it was a long way from the fighting, America made money from providing the goods that were needed.

What economic benefits did America see from the First World War?

America benefitted economically from the First World War in 9 key ways:

• ❖ American banks had loaned nearly $10 billion to European countries for war costs and rebuilding by 1919.
• ❖ War economies in European countries meant that they relied more on buying American goods.
• ❖ Countries around the world were also more likely to buy American goods as European industrial production slowed down.
• ❖ Factory production grew by 35%.
• ❖ There was more demand for steel.
• ❖ Coal, petrol and gas production grew.
• ❖ Shipbuilders had to replace ships that were sunk by submarines.
• ❖ The American railway network was modernised to transport troops and goods around the country.
• ❖ American consumer goods became popular in Europe.

How did American agriculture benefit from the First World War?

Farmers benefitted from the First World War because European countries couldn't grow or sell food while there was fighting, so there was greater demand for American crops.

• ❖ Food prices rose by 25%.
• ❖ Farmers could afford to buy machinery such as tractors.
• ❖ Many farmers borrowed money and bought more land to grow the food that was needed.

What problems did the First World War cause for America?

The war caused some problems in America, particularly in the months after it ended.

• ❖ 100,000 American soldiers had died fighting.
• ❖ Returning soldiers went back into the workplace. Some couldn't find jobs and others took those that had been done by women, throwing them out of work in turn.
• ❖ The increased use of black workers during the war caused race riots at the end of it.
• ❖ Demand for goods dropped as Europe began to produce its own goods again.
• ❖ The demand for food dropped as Europe began to grow more food again. Food prices dropped and farmers struggled to pay off the money they had borrowed.