Affects On The World

Before World War I the Untied States remained isolated from the rest of the world. Post WW1 the U.S. turned into a national creditor for other countries and handled all of the debts from the war. Germany could not pay the 33 billion in reparations and fell behind in payments. America stepped in and began loaning millions to Germany and other countries to keep it solvent. In 1924 the United States created the Dawes Act that provided loans to American Allies and other countries with a reduce of yearly payments. In 1928 concerns of the U.S. economy rose and America began to collect all of the money that was given out. The Allies paid back only 2.6 billion out of over 14 billion. They defaulted on the rest.