Asked by Erika Farrelly on May 15, 2024

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Discuss the international economic policies of the United States from 1918 to the beginning of the Great Depression, and explain why those policies failed to sustain a healthy world economy.

Economic Policies

Strategies and decisions made by governments regarding the financial management of the country, including taxation, government spending, and the regulation of money supply.

Great Depression

A severe global economic downturn that began in 1929 and lasted until the late 1930s, marked by massive unemployment and financial crisis.

World Economy

The global network of economic activities including trade, production, and financial transactions that take place across the world.

  • Analyze U.S. international economic policies post-World War I and their impact on the global economy.
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Ronalyn BaluyotMay 21, 2024
Final Answer :
The international economic policies of the United States from 1918 to the beginning of the Great Depression were characterized by a focus on protectionism and isolationism. After World War I, the U.S. government implemented high tariffs on imported goods through the Smoot-Hawley Tariff Act of 1930, in an attempt to protect American industries from foreign competition. Additionally, the U.S. pursued a policy of non-intervention in European affairs, as evidenced by its refusal to join the League of Nations.

These policies ultimately failed to sustain a healthy world economy for several reasons. Firstly, the high tariffs imposed by the U.S. led to retaliatory measures by other countries, resulting in a decline in international trade and exacerbating the global economic downturn. Secondly, the U.S. decision to isolate itself from international affairs contributed to a lack of cooperation and coordination among nations, hindering efforts to address economic challenges on a global scale. Finally, the U.S. stock market crash of 1929 and subsequent Great Depression had a ripple effect on the global economy, further undermining the effectiveness of U.S. economic policies.

In conclusion, the international economic policies of the United States from 1918 to the beginning of the Great Depression failed to sustain a healthy world economy due to their focus on protectionism and isolationism, which led to a decline in international trade, lack of global cooperation, and the spread of economic instability.