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07 - Catherine Clement AMH2020 Homework The United States...

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Catherine Clement AMH2020 Homework July 10, 2007 The United States became involved in the First World War for several reasons. Woodrow Wilson had a policy of neutrality when the war was first started, but events happened that violated this policy. With the war came an economic boom for the US economy because allied nations began relying on the US for war supplies. After American bankers issued loans to the Allied Powers, the British and US economies became even more closely knit. American investors now had a direct stake in the Allied victory. When British ships blockaded German ports violated American neutrality, Wilson knew that he had to do something. He knew that if he retaliated by suspending loans or exports to Great Britain would force the US economy into a recession, in failing to protect its right to trade with Germany the US compromised its neutrality and allowed itself to be drawn into war. Woodrow Wilson’s plan for peace was called the fourteen points, and it
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