The World Of World War I

While Democrats argued that protective tariffs would be detrimental to consumers, especially from the South, tariff revenues were able to give America an edge over other nations in the market. Even though tariffs would result in more jobs, help eliminate poverty, and protect workers, corporations failed to pass their benefits to workers, and gained monopolistic power. Furthermore, adhering to the gold standard was another critical economic decision for Republicans. In effort to replace “bimettalism,” Republicans adopted the gold standard. While it did attract investment capital from European nations, and led to the exchange of U.S. bonds and currency, the gold standard plummeted the nation’s money supply as silver was more abundant. Thus, the national policies implemented by the Republicans during the Civil War and Reconstruction were able to stimulate economic growth, but also at times hinder growth.

After the war, the industry of the United States faced strong competition from recovering European economies which lead to the enthusiastic reduction of free trade with the Smoot-Hawley act of 1930. This major imposition of across the board tariffs and the resulting decline of economic power lead an ideological change in economic ideals that would only start to take hold following the rapid growth of the next twenty years.

Economic development was high from (1950-1973) but ‘The Golden age’ in Europe then came to an end. The first major reason for the slowdown in economic growth was the closure of the technological gap between the US and Europe. Europe had now stabilised its growth by reaching a

America at home: By the end of 1945, war induced prosperity launched the United States into an era of unprecedented economic growth. Pent up demand after years of wartime mobilization made Americans eager to spend. Over the next two years, the GDP tripled, benefiting a wider segment of society than anyone would have dreamed possible in the dark days of the Depression. American global supremacy rested in part on economic institutions created at a United Nations conference at Bretton Woods, New Hampshire, in July 1944. The International Bank for Reconstruction and Development (known commonly as the World Bank) provided private loans for the reconstruction of war-torn Europe as well as for the development of Third World countries. A second institution, the International Monetary Fund (IMF), was set up to stabilize the value of currencies and provide a predictable monetary environment for trade, with the U.S dollar serving as the benchmark for other currencies. The United States dominated the World Bank and the IMF because it contributed the most capital and the strongest currency. In 1947, multinational trade negotiations resulted in the General Agreement on Tariffs and Trade (GATT), which led to the establishment of an international body to oversee trade rules and practices. The

* The first post-war period (1945-1975) witnessed strong economic growth and gradual increase in globalization under the Bretton Woods institutions. What do we mean by “the Bretton Woods institutions” (Background Brief: Bretton Woods Institutions)? What role did the US play in setting up these institutions and what were its motives?

Certain aspects of German society following the events of World War I became radically unstable. Such instability from 1918 to 1923, led to a series of economical, political and social crises, which would drastically change the country. Certain parts of the country were highly progressive, while other parts remained true to right wing beliefs, and as a result, coexistence proved to be too difficult. While Germany was having its own civil issues stemming from internal unrest, outside factors would also greatly influenced the crises which would call into question the future of Germany. Although one single issue cannot be determined as the sole cause of the crises, the major influences which factored into the upending of German society can be

In Bretton Woods, New Hampshire, representatives from the Allied nations met to change that. The agreement they struck, known as the Bretton Woods system, provided what they believed to be the necessary infrastructure to facilitate this increasingly global economy. All currencies would have a set exchange rate, in gold-backed dollar terms. This would, in theory, make global transactions involving different currencies simple and easy to regulate. The International Monetary Fund was established to make sure that these exchanges ran smoothly and that countries could meet their obligations.

The end of the Second World War showcased a devastated world with the former economic powerhouses of Europe in disorder. In contrast the United States of America emerged as the global economic powerhouse. America's aim was to reconstruct and establish a post-war global order that cemented American hegemony. This essay will argue that revolving global reconstruction and development around the surpluses of the United States led to the most golden period of capitalism, where growth in both economic and social spheres was unprecedented and is unlikely to be repeated. The stability and effectiveness of the Bretton Woods institutions and the Marshall Plan helped produce massive growth that lifted the global economy into a full-fledged recovery, away

Beginning in 1870, each nation converted their national currencies to their relative worth in gold. This was called the Gold Standard and it has brought up many arguments between politicians, businessmen, and organizations with prominent economists on whether or not to return to it. Although there are multiple reasons why America should not return, there are also many resurfaced ideas that would make it very profitable for us to do so. The United States abandoned the gold standard to finance WWI. Shortly after the war was the beginning of the Great Depression. The Gold Standard constrained governments from helping the financial system and the economy during this time. The reason we abandoned the Gold Standard was because of the crisis our country and many others were in.

The Bretton Woods System was formed as a result of the collapse of the Golden Standard and The Great Depression. These closely related events prompted the need to establish an international monetary system, whose main aim was to revive the economies of the Post World War as well as fostering international economic relations that would end inter-war conflicts.

Americas position that it had acquired post World War 2 led the formation of the Global Economic system through reconstructing other nations and molding them to have strong economics, implementing new economic theories, and bringing the world into a new age of capitalism.

The rise of globalization following WWII generated three important factors that define today’s world. McNeill and McNeill agree with Pollard, Rosenberg, and Tignor that multiple economic changes, such as the creation of financial institutions like the International Monetary Fund (IMF) contributed to the globalization of the world economy. Carter and Warren further this argument by claiming that globalization has caused shifts in the modern economy, namely the rise of Asian economic powers. However, all three historians agree that the rise of globalization goes hand in hand with the rise of inequality in today’s world. Gaps in power, wealth, and access to information have only widened due to the trend of globalization. The final key factor defining our world today are the ongoing processes affecting development countries. McNeill and McNeill argue similarly to Carter and Warren that the end of imperialism generated new nations who quickly realized the free market was a pathway to stability. However, Pollard et al. and McNeill and McNeill place importance on financial institutions like the IMF forcing developing nations to reform their economies to be subservient to the world’s economy. Together, these historians argue that the trend of globalization following WWII caused factors like the modern global economy, the rise in inequality, and the development of new, decolonized nations to be key determiners in the world today.

Western Europe after the World War-I was caught up with economic instability and disparity of the economic recovery following the World War-II was more evident in the context of international trade relations. Economic reconstruction after the World War-I was deficient in institutional machinery to make possible the reduction of trade barriers that has arisen during the war and had become well-established thereafter. The European countries had faced political weaknesses and it was reflected in trade policies which was evident with the proposal of “equality of trade conditions” in draft League of Nations was discarded in favour of a the provision for the “equitable treatment.” The World Economic Conference held in 1927 found it indispensible to call upon the governments to do away with maritime controls on trade, which incorporated, licensing requirements, import quotas and foreign exchange controls. After over a decade of its formation, the League of Nations had nevertheless had yet to sponsor any negotiations on liberalizing world trade from high tariffs, and the commencement of the depression

Some of many important bodies that impacted included; the academic economists, the national policy making, academic economist, national policy making bodies as well as international Monetary fund (IMF). The International Monetary Fund have influenced the way in which numerous multilateral institutions works in the worldwide economic changes as a result of globalisation. In historic times the Classic Gold Standard (1870-1914) was known as the perfect monetary system that was ever created. During this course, national money and other forms of money such bank notes & deposits were converted to gold at a fixed price. During the time of 1914-1944 the Interwar era occurred whereby, economic demands were made during the World War 1 to abandon the Gold standard and print large amounts of currency.

THE WORLD BANK or the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF) were created in 1944 by leaders of the 44 nations at the Bretton Woods Conference. The Bank was responsible for financing long term productive investment in member countries while the IMF was to provide loans to overcome short-term balance of payments deficits. Western leaders feared an unregulated world market would mean a return to depression, poverty and another world war. At Bretton Woods (located in New Hampshire, U.S.), “the decisive factor was the reality of American power.” With much of Europe destroyed by the Second World War, the U.S. was economically the world’s most powerful country; thus a U.S. vision prevailed at the conference and the World Bank and the IMF were created along U.S. lines. Unlike the U.N. also