World War I

At the beginning of the World War I, the United States of America declared its neutrality and did not want to be involved in the European War. The President of the USA Woodrow Wilson was willing to make peace, but he did not succeed. The sinking of the Lusitania resulted in demonstrations against Germany in the USA, and it was harder for the US to keep neutral. Consequently, the USA entered this war and supported those countries that battled against Germany. The enemies of Germany had a lack of soldiers, different products, and weapons. In addition, the economic situation was negative, and the war would aid them in increasing this situation.

The issue is that during the World War I, European courtiers could not support their economic development and had a lack of necessary products. America provided these countries with a large variety of products and, as a result, became the economic leader of the whole world. In addition, after the war, America captured German technologies that helped to construct new submarines and nuclear bombs, which increased the country’s power. American enterprises produced and sold products for the whole Europe and did not have competitors. However, after a short time, European countries started to increase their production and averted the crisis. Consequently, the USA lost its main exporters and began to enter the crisis. The issue was in overproduction, that is, those products that were supposed to be exported to Europe were not sold, and the country did not have enough demand. The crisis is well-known as the crisis of overproduction, when enterprises lost profits and people lost their jobs. Consequently, this crisis resulted in the Great Depression in 30th.

To sum up, at the beginning of the war, America had more economic advantages, but later the country faced the crisis which led to losses. However, American participation aided in making peace in the war as it provided western countries with the necessary help.