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Effects of WWI on the American Economy

How did the war adversely affect the U.S. economy? What were some of the repercussions of this adverse affect? Could the economic downturn have been prevented? Why or why not?

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Your question was not entirely clear as to the timing of the adverse effects, but I believe that you are talking about the initial downturn right after WWI. The economy was also adversely affected long term, leading ultimately to the great depression. I'll address the initial downturn first.

To put it simply, entering the war had an initial positive effect on the economy, and for the 19 months we were directly involved in the war, we contributed an incredible amount of supplies, raw materials, and weaponry. Economically, the absence of all those American soldiers (well over 4 million, eventually) benefited the poor, women, and minorities, because ...

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This is a solution to the question, "How did the war adversely affect the U.S. economy? What were some of the repercussions of this adverse affect? Could the economic downturn have been prevented? Why or why not?"

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