WW1's effect on the American Economy

As the war unfolded, the business community in the US became increasingly concerned about how Europe's economy would harm the American economy. This scared business leaders to the point where the New York Stock Exchange was closed for more than 3 entire months, the longest time it had been closed in history.

However, many businesses saw the war as a potential source of money. As war became more mechanical, American manufacturers capitalized on producing materials to fuel the American need for artillery and other war necessities. There was a huge opportunity for them to take advantage of, and the manufacturing industry was able to spring its way back into action.




In 1913, US exports including metals, machines, and automobiles went from 480 million dollars to 1.6 billion dollars in 1916. These numbers seemed to only grow as the war progressed.

By the end of 1918, America had produced 3.5 million rifles, 20 million rounds of artillery, 633 million pounds of gunpowder, 376 million pounds of explosives, and 21,000 airplane engines. The war effort had paid off, and the US had been able to modify their economy and have success.