World War I

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In the United States, what were the economic benefits of WWI?  My report is on the innovations and economic benefits of WWI. I have many innovations from the zipper to the machine guns, but I am...

In the United States, what were the economic benefits of WWI? 

My report is on the innovations and economic benefits of WWI. I have many innovations from the zipper to the machine guns, but I am having trouble finding documented evidence of economic benefits.

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D. Reynolds eNotes educator | Certified Educator

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World War I benefitted the United States greatly on the economic front. It catapulted the US out of a recession and into an economic boom that lasted almost four years. The US doubled its output of goods in this period so that it could help supply the massive war effort in Europe. It went from being a debtor to a lender nation. Furthermore, to finance the war effort, the US, like most other countries, raised its top tax rate to unprecedented levels—in the US's case, to a top rate of 77 percent.

The war also led to the Great Migration of African Americans from the South to higher wage industrial jobs in the North. The higher taxes on the wealthy and higher wages for poorer groups together led to greater income equality after the war, which benefitted the economy, helping to fuel the Roaring Twenties. However, income inequality still remained high until the Great Depression devastated all economic classes.

The United States benefitted after the war from having made great increases in its...

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