United States Involvement in World War 1 & 2: Financial Impacts of the World Wars

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United States Involvement in WW 1 And 2
Introduction
The two world wars while often denounced as wars of ideology, pitting two alliances against each other were primarily wars overs control of resources. All nations that got involved in the war hoped in some way to benefit from their contribution to the war effort. In terms of financial costs, the six major players spent an inordinate amount of money between 1914 and 1915. The United States spent $ 22,625,253,000, Great Britain spent 35,334,012,000, and France spent 24,265,583,000, Germany 37,775,000,000, Russia 22,293,950,000 and Italy 12,413,998,000CITATION Spa15 \p ": spartacus-educational.com" \l 1033 (Spartacus Educational : spartacus-educational.com). These nations hoped that by spending such financial resources, they would reap a greater financial reward. The Second World War was devastating in its effect to human life and damage to property’ It was largely driven by technological advances that led to 80 million dead compared to 20 million in world war oneCITATION Nad11 \p 2 \l 1033 (Nadège Mougel- Reperes 2).
In both wars, the nations hoped for quick military victories within a span of weeks. These nations did not envisage that a military war could potential result in an economic war. Major players had hoped that they could achieve victory quickly before an economic war was necessary. The failure for any side to achieve a quick victory would quickly result in a war of attrition. Major European players galvanized their national economies and colonies for a long war. The wars were both won by the side that had significant assets to put into the war effort. The entry of the United States in both wars significantly shifted the balance for the side the US supported. The United States brought an exceptional amount of resources into the war effort. It had a huge population, a significant amount of territory, it had natural resources, the technology that it could use to provide material for use in war and a GDP that was higher than those of the European countriesCITATION Bro05 \p 2 \l 1033 (Broadberry and Harrison 2). Before the outbreak of war, the United States maintained a foreign policy of Isolation and strict NeutralityCITATION Uni15 \p ": u-s-history.com" \l 1033 (United States History : u-s-history.com). In the belief that it could advance its values of freedom and democracy in peaceful ways. The United States also understood that the impact on the global economy from a world war would be devastating. The paper looks into the US involvement in the two world wars and discusses the financial impacts that resulted from the US involvement.
World War
The US joined World War 2 on April 2, 1917, under President Woodrow Wilson. He cited the reason for this as Germany reneging on the Sussex pledge and conducting unrestricted submarine warfare on passenger shipping. The German U-boats had previously sunk 2 British liners the Lusitania and Arabic that had US citizens on boardCITATION Off15 \p ": state.gov" \l 1033 (Office of the Historian : state.gov). The British intelligence also intercepted a telegraph from the German Foreign Minister to the German Ambassador in Mexico City promising Mexico of its support should it choose to attack the United StatesCITATION The14 \p ": telegraph.co.uk" \l 1033 (The Telegraph : telegraph.co.uk).
The United States mobilized for the war effort in a number of ways. Financial resources were mobilized where private resources were transferred to the government. The government did this by issuing government securities. The US also instituted a mandatory draft for the military. Individuals were required to serve in the military for a given period. Capital mobilization transferred weapons and technology to the government for use in the war effort. The US brought in a combined (the US and its colonies) 194.5 million people and 523.2 billion dollars GDP to the war. The United States experienced a change in the real GDP growing from 100 to 113.2 compared to other powers that experienced a decline except the United Kingdom.
World War 2
The US joined the Second World War in response to the bombing of its Pacific fleet by Japan on December 7, 1941. The nation immediately began mobilization instituting a draft for the first time in peacetime. Close to 36 million men registered for the draft. The US began to reconfigure its economy to ...