Economic Systems

WWI U.S. Soldiers

Economic competition

• Asia, Africa, and the Middle East had natural resources, and could serve as markets for European nation's manufactured goods.

• Total war effort: Government organized all people in the country to help fight the war.
• Rationing means putting a limit on resources or food that people can obtain.

American trade favors the Allies

• U.S. actions favored the Allies because U.S. sold them weapons, ammunition, food, supplies.

The Cost of the War

• WWI helped U.S. economy be more productive because U.S. was the world's banker.

The War's Effect on the U.S. Economy

• War Industries Board organized railroads into one system and ordered more ships built to increase industrial production.
• Standardize is to make all products with the same dimensions.
• Business owners increased the prices of their products, gave small increases to workers. Thus, owner's profits increased.

Labor

• Workers' wages and conditions improved very little because labor struck while the U.S. was neutral.
• Mission of the National War Labor Board was responsible for working out agreements to prevent strikes.

Farmers

• Farmers bought more machinery and farmed more land during WWI.

Financing the war

• Income tax on people and taxes on business profits were raised for the U.S. to pay for the war.

Increased demand

• Because of the rebuilding of Europe, and the needs of the American public, after the war there was a great demand for U.S. items.

Racism

• African Americans moved to northern cities in 1915-1920 to escape discrimination and to find jobs.

Women

• Women worked in blue-collar jobs meant the role of women changed during the war.