1910's Business and the Economy | World War I and the Economy

Mobilizing the Economy.

The United States officially participated in World War I for only nineteen months, but the war had a tremendous impact on domestic America. President Wilson declared that belligerency would require "the organization and mobilization of all the material resources of the country." Indeed, the government worked hard to get both the hearts and minds of the American public behind the war effort.

Benefits of Belligerency.

The United States sent a much-needed influx of men and materiel to Europe and insured the defeat of the Central Powers. The war initially cost the U.S. government about $33 billion plus interest, and veterans' benefits would later bring the total to $112 billion. However, this figure hides the great profitability of the war for the nation. Instead of hurting the domestic economy, the war effort strengthened and improved America's competitive position in the world. Farmers enjoyed...