Impact of the First World War

Question 1

How was Europe affected by WWI?

Answer 1

Economically they were in ruins. Some countries had borrowed huge sums of money from the USA to finance the war and post-war rebuilding. An example is Britain, who owed $4,277 million.

Question 2

How was the USA affected by WWI?

Answer 2

The USA were doing great economically. It was producing and exporting a large quantity of goods to Europe. It won new export markets, such as supplying cotton to Japan. This led to high employment and good wages.

Question 3

What was the Treaty of Versailles?

Answer 3

Woodrow Wilson (President of the USA) wanted a peaceful treaty based upon his 14 points. France and Britain disagreed choosing a much harder punishment for Germany. This included:
1. To accept war guilt
2. Pay reparations (compensation money to the Allies)
This was the Treaty of Versailles.

Question 4

What was the League of Nations?

Answer 4

President Wilson pushed for the League of Nations. This was an international organisation for world peace. Eventually the Allies created ‘the peace treaties’. If a country signed the treaty, they automatically joined the League of Nations.

Question 5

What was isolationism?

Answer 5

America did not want to join the League of Nations. They wanted to separate themselves from world politics. They refused to accept the treaties and therefore did not join the League of Nations.

Question 6

What was financial isolationism?

Answer 6

The government wanted America to become independent economically. They did this by:

1. 1921 Emergency Tariff Tax Act- This was taxing goods imported into the USA which made them expensive. This encouraged Americans to ‘buy American’
2. 1921 Budget and Accounting Act- Government spending was monitored and controlled
3. 1921 Revenue Act- This cut peoples taxes on high levels of profit
4. 1922 Fordney and McCumber Tariff Act- Raised tariffs and extended them to industrial goods.