Foreign policy 1920-1941

Development - economic nationalism

• America refused to forgive war debts owed by the allies and demanded their paying in full

• leads to the Immigration Act 1924

  • strict quotas and tariffs on foreign goods

  • reduce foreign influence and American jobs

• American public opinion more concerned about the effects of the Depression and stimulating more demand and jobs

• Big Businesses and Industrialists isolationist and distrusting of foreign trade

  • went against their own interests

  • would benefit the most from importing foreign goods

Extend of isolationism - economic nationalism

• isolationist - Smoot-Hawley Tariff Act 1930 reduced international trade by 66%

• Opinion of big businesses heavily influenced the isolationist trend

• prioritising American interests, raising prices for consumers

Development - Nye Committee

• 1934 – Senate appointed the isolationist Republican politician Gerald Nye to investigate the armaments trade (heading the Nye Committee) 

• Found questionable practice in the munitions trade and the resulting massive profits by American financiers and industrialists after WW1 

• Conclusion: US entry into the war was decided by a select few people who would economically benefit from the war the most 

• 70% of Americans felt that entry into the war was a mistake in an opinion poll 

Extent of isolationism - Nye Committee

• Would aid in public opinion further withdrawing into isolationism 

• The idea that breaking from isolationism was dangerous as it would only benefit those profiteering would become stronger 

• Pan-American national interests were better served internally rather than externally