Taft advocated the use of economics as an imperialist tactic in Latin America, a broad label given to the countries of Central and South America. Taft’s policy became known as “Dollar Diplomacy.” Taft believed that by repaying European loans for countries in debt, European powers would stay out of Latin America. Also, countries receiving American aid would give certain rights to the United States in exchange for the financial assistance. Taft said, "It is organized on the basis of the needs of the government in 1800 instead of 1900." Taft did this so that he could make the policy a top priority to reorganize the State Department, and the organization was being served in a very large part of the Secretary of State Knox's First Assistant Secretary, Huntington Wilson, who served as de facto Secretary of State due to Knox's frequent absences. Again displaying his inept administrative leadership,with Taft deferred to much of Wilson's policy making at the time Wilson was still in office. William Howard wasn’t into the whole big business and industry types, and “moral diplomacy” was a belief that it was America’s moral duty to establish democratic governments in Latin America. …show more content…
Wilson believed that establishing democratic governments in struggling nations would secure their loyalty to the United States and not to European countries which later led to him establishing constitutional, democratic governments in Haiti and the Dominican Republic, including other countries too. During the 1930s, the policies the U.S. had towards foreigners were threatening other countries, which led to the attack on Pearl Harbor in December of 1941 (“Foreign Policy”). Since the beginning of the 21st century the United States of America influence remains strong even now, Foreign policy analysts Hachigian and