World War I, Like All Term Paper

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National debt and veterans benefits for example drove a permanent increase in taxes, although these were not as high as during the war. The country's international economic position was also permanently affected. Its pre-war status as a debtor country was permanently changed to a net creditor, in the order of $6.4billion. Also, the power as financial world leader shifted from London and the Bank of England to New York, with an enhancement of the Federal Reserve's role (World War I History).

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In general, it appears as if the war effort had a favorable impact on the U.S. economy. The devastating human and resource losses were offset by favorable economic factors. In this way, World War I changed the economic position of the United States both permanently and favorably......

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