Growing Power of the US - The Growing Power of the United...

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The Growing Power of the United States of America The role of the United States in the world was greatly impacted by WWI and WWII. The wars' effects allowed the US to gain an advantage over the other world powers. The US went from being a non-dominant country in 1914 to one of the most powerful countries in the world in 1945 because WWI and WWII brought them political and economic benefits. The US became increasingly more powerful because while other countries' economies were suffering after the war, the United State's was booming due to wartime opportunities. The US entered WWI for many reasons including the Zimmerman Telegram and the sinking of Lusitania. However, one of their main reasons to join was to strengthen their economy. The US entered to ensure they did not lose the two billion dollars they invested in the war. This was a beneficial decision as they were victorious which resulted in a favorable economy. When they entered the war the unemployment rate dropped from 7.9% to 1.4%. 1 Many people were enlisted in the military and others went to work in factories to create wartime goods. Europeans bought guns, shells, and other war materials from the US and that caused the US's industry to boom. Because the economy was doing so well, the US was able to pay off seven billion dollars of their debt. The US's economy was flourishing while Europe's was in trouble. Many world powers such as France and Germany had an enormous decline in their economy after the war. 2 Hugh Rockoff, an author of U.S. History and economic books, wrote, "New York emerged as London's equal if 1 Carlos Lozada, "The Economics of World War I," The National Bureau of Economic Research, April 14, 2015, http://www.nber.org/digest/jan05/w10580.html. 2 "Reluctant Warriors: The United States in World War I." World War I Reference Library . Ed. Sara Pendergast, Christine Slovey, and Tom Pendergast. Vol. 1: Almanac. Detroit: UXL, 2002. 171-186. U.S. History in Context .
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