During the war, Britain imposed a naval blockade on the Central Powers in order to prevent important resources. Though this was seen as a violation of American neutrality, the economic benefits to this blockade increased American trade with the Allies fourfold. However, an effect of this trade relationship were the massive loans U.S. banks had given to the Allies, totaling almost 2.5 billion dollars. This set up economic warfare between Germany and America, in which Americans would favor the Allied Powers in terms of giving financial aid. Had the Allies lost, they would have defaulted on these loans, resulting in calamitous losses for American companies. As the president, Wilson was required to protect the industry and the livelihood of Americans, justifying his position on joining the war. Similar to the situation with unrestricted submarine warfare, the threat Germany posed to the economy also supported the cause for a world “safe for democracy”. First, since the Allied Powers were commercial allies, German control of the sea limited free commerce. Furthermore, the threat of a German victory, as previously stated, would result in the failed repayment of debts. Britain and France would not be able to pay back their debts while under German rule, which again violates the foundation of freedom in democracy. Wilson had to make sure that the large debt would be repaid, and a German victory would most certainly have quashed this necessity, justifying him involving America in the
During the war, Britain imposed a naval blockade on the Central Powers in order to prevent important resources. Though this was seen as a violation of American neutrality, the economic benefits to this blockade increased American trade with the Allies fourfold. However, an effect of this trade relationship were the massive loans U.S. banks had given to the Allies, totaling almost 2.5 billion dollars. This set up economic warfare between Germany and America, in which Americans would favor the Allied Powers in terms of giving financial aid. Had the Allies lost, they would have defaulted on these loans, resulting in calamitous losses for American companies. As the president, Wilson was required to protect the industry and the livelihood of Americans, justifying his position on joining the war. Similar to the situation with unrestricted submarine warfare, the threat Germany posed to the economy also supported the cause for a world “safe for democracy”. First, since the Allied Powers were commercial allies, German control of the sea limited free commerce. Furthermore, the threat of a German victory, as previously stated, would result in the failed repayment of debts. Britain and France would not be able to pay back their debts while under German rule, which again violates the foundation of freedom in democracy. Wilson had to make sure that the large debt would be repaid, and a German victory would most certainly have quashed this necessity, justifying him involving America in the