The WWI Essay Example | Topics and Well Written Essays - 500 words

The WWI - Essay Example Prior to joining the WWI, the United States enjoyed a blossoming, prosperous years that were evidenced by a rapid growth in the GDP and a positive improvement in the standards of living of the American People (Gary pp 417). However, after the war, with much of the expenses in the war having been borne by the American people, there was a considerable slump in the American economy. The average American consumer had to chuck out more to obtain the same amount of goods they would have obtained before the war. After the war, the American government tremendously reduced its number of troops and significantly reduced the pay of the remaining solders. As a result veterans returning from the war complained of the lack of other opportunities in the country. Since congress had allocated many funds to ensure success in the war and with the strain in the standard of living, the rise in inflation became persistent. After the war the government was more indebted than ever in the history of the Unit ed States. The war had cost the American government an estimated $38 million financed by the federal government and through the issue of war bonds and stamps (Cross pp 45-57). Prices of commodities shot up tremendously. Investment reduced greatly as Americans had no surplus cash due to the rising inflation.