War Profiteering

How Did The United States Profit From World War I?

Before the war, the United States was in a recession. A recession that was a whole lot more obvious than the one we as a nation are currently struggling through today. How can a country solve it’s economical problems without resorting to war? Well, not many had that kind of a solution on their mind when World War I broke out in 1914, economic strategists where looking at it as a beautiful thing. Like a golden life saver amidst the debris of a sunken English ship, The Lusitania. The exact device that through the United States into the war. But what preceded that? It was written by one of the presidents of the United States that we, the people actually needed a war! Who needs a war? In 1897 Theodore Roosevelt wrote to a friend: “In strict confidence… I should welcome almost any war, for I think this country needs one.” (Zinn 93).

The United States began to boost it’s economy by increasing it’s overseas relationships, as well as increasing production. They produced weapons that would be sold to the Allies during the beginning of the war. Of course the action didn’t place the United States in the good graces of the Central Powers, either. But that didn’t stop the United States from selling weapons to the countries that best served it’s interests. That’s what profiteering is all about.

Profiteer: Make excessive profits: to make excessive profits by charging high prices for scarce, necessary, or rationed goods. n (plural prof·it·eers) somebody making excessive profits: somebody who makes excessive profits by charging high prices for scarce, necessary, or rationed goods. -prof·it·eer·ing, n (Encarta ® World English Dictionary).

The idea was that keeping the Allies around was better than supporting the Central powers because of the accessibility. England could be reached easier than Germany or Bulgaria, and it had far greater ports, which would increase the trade power, making England a better ally to the United States than any of the Central powers. As well as the fact that the French had helped out the United States during the Revolution, so, in a way, the United States owed France one. Although they had backed out of their agreement to assist them during the hundred years’ war due to their isolationist ideology, the United States went ahead and used it as reasoning for their assistance in the beginning of the war. However the idea of profiteering has always been there, and here is an example.