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How much did the US spend on WW1?
How much money did the Allies spend on WW2?
How much money did Germany spend on WW2?
How did World War 1 affect the US financial system?
How were US bonds redeemed after WW1?
Who financed the Allies in WW1?
Britain came a close second with a total credit provision of $6.7 billion, largely to Russia ($2.5 billion), Italy ($1.9 billion), and France ($1.6 billion). France lent $2.2 billion, almost of half of which ($955 million) was to Russia, $535 million to Belgium, and the remainder to smaller Allies.
- A War of Production
- America Joins The Fight
- Funding The Fight
- A World Power
- Sources
World War Iwas the first modern mechanized war, requiring vast amounts of resources to equip and provision massive armies and provide them with the tools of combat. The shooting war was dependent on what historians have termed a parallel “war of production” that kept the military machine running. During the first two and a half years of combat, the...
Neutrality came to an end when Congress declared war on Germanyon April 4, 1917, and the United States began a rapid expansion and mobilization of more than 3 million men. Economic historian Hugh Rockoff writes: By the end of 1918, American factories had produced 3.5 million rifles, 20 million artillery rounds, 633 million pounds of smokeless gunpo...
The total cost of America’s 19 months of combat was $32 billion. Economist Hugh Rockoff estimates that 22 percent was raised through taxes on corporate profits and high-income earners, 20 percent was raised through the creation of new money, and 58% was raised through borrowing from the public, mainly through the sale of “Liberty” Bonds. The govern...
The war ended on November 11, 1918, and America’s economic boom quickly faded. Factories began to ramp down production lines in the summer of 1918, leading to job losses and fewer opportunities for returning soldiers. This led to a short recession in 1918–19, followed by a stronger one in 1920–21. In the long term, World War I was a net positive fo...
Federal Reserve Bulletin. p. 952. Oct. 1, 1919, Washington, D.C.Fraser. “War and Postwar Wages, Prices, and Hours, 1914-23 and 1939-44 : Bulletin of the United States Bureau of Labor Statistics, No. 852.” FRASER.Jefferson, Mark. "Our Trade in The Great War.""Geographical Review." American Geographical Society, 1917, New York.- Heather Michon
By the end of the war, the United States had lent more than $10 billion to foreign governments, almost half of it to Britain, and it flexed its financial muscles by requiring that its loan money be spent on U.S. products.
The Allies had much more potential wealth they could spend on the war. One estimate (using 1913 US dollars) is that the Allies spent $147 billion on the war and the Central Powers only $61 billion, but Germany concentrates the largest industrial conglomerate in the Rhineland region.
Among the Allies, Britain and its Empire spent $47 billion and the U.S. $27 billion (America joined the war in 1917) while among the Central Powers, Germany spent $45 billion. The UK spent 45 percent of GDP, during WW1, peaking at 47 percent of GDP in 1918.
Nov 22, 2013 · By the spring of 1918, the federal government had sold roughly $10 billion ($155 billion in 2012 dollars) in war bonds and Treasury certificates. As a result of Fed lending at low interest rates, credit conditions eased throughout the domestic economy, which was thriving on increased exports to Europe.
Before the United States entered the war, New York banks had loaned heavily to the British. After the U.S. entered in April 1917, the Treasury made $10 billion in long-term loans to Britain, France and the other allies, with the expectation the loans would be repaid after the war.
