Economic change and developments

• Economic change and developments

  The rise of US dominance as an economic and industrial power

  Production - Capital investment in US manu increased from $1b to $10b by 1900. Value of US manu grew in same period from $2b to $13b. By 1914, USA was producing 33% of world's manufactured goods.
• Economic change and developments

  The rise of US dominance as an economic and industrial power 2

  Technical growth - between 1860 and 1890, 440,000 patents for new products and processes were taken out in USA. Most of these had practical purposes; e.g., Bessemer process of steel production helped build steel railroad tracks, ploughs, bridges and skyscrapers.
• Economic change and developments

  The rise of US dominance as an economic and industrial power 3

  Consumption - effects of manu growth meant changes in consumption. Products such as cars - 8000 by 1900 - were only for the rich, although by 1888 NY had more telephones that the whole of the UK, and 100,000 Americans had purchased cameras. However, improved communications especially through railroad growth brought more fresh food to improve diets of city dwellers and improved production methods meant tinned food became available.
• Economic change and developments

  Consequences of US dominance

  USA expanded into foreign investment and production in countries abroad. E.g., value of its exports rose from $1,495,616,000 between 1903 and 1905 to $2,441,252,000 between 1911 and 1915. It also, however, became involved in economics of both developed and developing countries. In 1950, historian William A. Williams argued that the need for markets was prime motive for foreign expansion. The need to protect investments and prevent too much foreign competition saw the USA sig extend its roles overseas.
• Economic change and developments

  Consequences of US dominance

  Dollar diplomacy- the term by which USA extended its influence in neighbouring countries by use of its economic muscle. E.g., 1911 it took over management of Nicaraguan economy when it couldn't pay its foreign debts. It also muscled into a European-based consortium that was financing a major Chinese railway cos it realised the value of controlling railroads for economic purposes.
• Economic change and developments

  Consequences of US dominance

  Dollar diplomacy (Latin America) - US economic investment in Latin America was sig enough to be a major factor in development of US imperialism. E.g., by 1900 the USA was investing $50m in Cuban economy, while 43% of value of Mexican economic production was in US handle.
• Economic change and developments

  Consequences of US dominance

  Dollar diplomacy (Britain) - USA invested substantially in Britain. Tycoon Charles Tyson Yerkes helped build London Underground system, particularly the Piccadilly, Northern and Bakerloo lines, and oversaw intro of electric power. Heinz opened his first British food factory in Peckham in 1905. Ford cars were being assembled in Britain by 1911. Level of US investment overall was so great by early 20th century that British press criticised 'an American invasion'.
• Economic change and developments

  Consequences of US dominance

  Open door - in 1899 US Secretary of State John Hay into idea of 'open door' by which states would respect each other's trading rights in China. Point was USA recognised its economic power and need to maintain its economic influence. By 1900, strength of economic development meant it needed to involve itself in foreign enterprise both to defend its existing investments and in order to continue to expand.
• Economic change and developments

  Expansion of sea power

  In 1890 and 1892 Captain Alfred Thayer Mahan wrote two enormously influential books on the impact of sea power, both to extend national influence and to protect economic interests. Many politicians supported his ideas and during 1890s the size of US navy rose from 12th to 5th largest in the world. The growth of US navy was increasingly seen as vital in USA becoming a major world power.