What led to World War 1

The World war 1was fought in Europe and lasted from July 28, 1914 to November 1918. It was cause by the assassination of Austrian nationals, Archduke Franz Ferdinand and his wife by a young Serbian revolutionary.  Although the United States was actively involved in the war for only 19 months, the mobilization of the economy was extraordinary. Over 4million Americans served in the armed forces and the U.S economy turned out a vast supply of raw materials and ammunition's both for itself and its allies.

When the war began, the US economy was in recession. But a 44 month economic boom ensued from 1914 to 1918, first as Europeans began purchasing American goods for the war. Entry into the war in 1917 shifted national production from civilian to war goods. Between 1914 and 1918, some 3million people were added to the military and half a million to the government. Overall, unemployment declined from 7.9 percent to 1.4 percent in this period, in part because workers were drawn in to new manufacturing jobs and because the military draft removed from many young men from the civilian labor force.

The output of the United States on the war is widely estimated to be about 32billion dollars or 51percent gross national product at the time. The breakdown of the financing of the war was estimated as follows; 22 percent in taxes, 58 percent through borrowing from the public and 20 percent in money creation. The gold reserve of Britain ran out thereby forcing them to borrow 4billion dollars at a time from the United States to prosecute the war.

America emerged as a World super power immediately after the World War 1 because Europe had been massively decimated by the war and African and Asian colonies under the imperialist rule of these European nations began to secure their own independence. Domestically, there was an unbounded enthusiasm about the promise and possibilities of the "American Dream". The soldiers that returned from the war after defeating Hitler in battle believed in the idea of being able to provide a life of material comforts to the women and children they met on their return. The economic boost of post war America allowed the nation to define its dreams of the future in a material sense and this helped to change how Americans viewed themselves and the world. Hence, America was prosperous as a result of the destruction of major parts of Europe in both resources and manpower as a consequence of long years of war

The immediate post war period was one of labor unrest and racial tensions. Farmers were struggling because of abrupt end of wartime demands for their goods. Not Every American experienced prosperity immediately after the World War 1. Despite these problems, for a few years in the 1920's  a period of real prosperity. Families began purchasing automobiles, radio, refrigerators etc voters rights were being championed which eventually birthed the progressive era. The emphasis on materialism led to the creation of an economy run on credit which was essentially unknown before the war.

 The good times did not last though, as values of many stocks which had earlier became artificially inflated fell dramatically in October 1929. Over the next 3 years, the business recession in America became part of a worldwide economic depression. Businesses and factories shut down, banks failed, farm income dropped. By November 1932, about 20 percent of Americans were unemployed. The depression started in the United States and spread to every nation of the world. The timing of the great depression varies in different countries but its impact was felt by every nation of the world. It is the longest and deepest economic depression of the 20th century.