The following document will look at the global financial crisis and how it was affected by American foreign policy between 1898 and 1945. The evolution of the American policy has been viewed as one that has been isolated and has participated in the leadership of the economic system in the world and is said to reverse.
The theory of public and private goods, USA looked after the interest of its private things. It is said that it spent a quarter of its time in the 19th century to play leadership roles and this was seen as international interest to the public before going back to its affairs.
The foreign policy in America is the policy that the country uses to interact with other foreign countries. It is the most influential policy as this makes the country to remain the only superpower in the world. The purpose of this policy is for the purpose of creation of secure, prosperous and democratic benefits to the world and the people who inhabit in America.
The purpose is also to control exports and this includes the nuclear technology. The policy has led to the global financial crisis since America determines other foreign markets. Experts have warned that the crisis can be dated back in the period of 1898 and 1945 because the policy was as result of America rising to become a superpower.
The financial crisis in America was brought about by the war and the fact that it had rivals who had taken more shares in the market that America dint have. This is when the open door notes were introduced to the imperial powers that were in the lead at that time. This was meant to make those in power to respect each other by creating equal opportunities for commerce in the regions that consolidated china.
The Americans wanted each power to give assurance. The notes neither gave challenge to the other powers nor wanted give Americans equal opportunity to invest as the spheres. All the Americans wanted was to be given equal treatment as the others and navigation when doing their commerce. When given the opportunity they would leave the collecting of the levies and charges that would occur to the Chinese authorities.
The open door policy is also seen to affect the making of the foreign policy. This is because the policy saw America rise in the market as a major power in the areas where Europe did not have supreme. The policy later turned out to be scant as Americas did not obtain markets that the business community and the politicians dreamed of. The open door policy also failed because it created resistance among the foreign countries.
It was also seen that America wanted to wipe china out of the market. Another factor that is said to cause an effect to the America foreign policy is the new deal. The new deal was a set of programs that were initiated by President Franklin D. Roosevelt and it was for the purpose of providing employment to the unemployed, introducing major reforms to the businesses and aid in the recovery of economy during the period of The Great Depression.
The first new deal was formed in 1933 and was aimed at recovering programs at short-term. During this time the president implemented reforms in the banking sector, introduced programs in relief, agriculture, industries and the federal state. The second deal was formed in 1935-1936 with the aim of supporting the labor union, reforming the social security act and aid farmers. The new deal saw changes in politics, domestic policy and the federal government took control of the economy and money supply. It had effects on prices for the agricultural commodities. There was a crash in the stock market in 1929 and this led to the rise in unemployment and manufacturing to go down. Most programs of relief were shut down during World War II and the regulations ended.
The other factor is the dollar diplomacy and this was the effort that was made by America to provide a way that could further their foreign policy to be granted loans by other countries. The then president Roosevelt started the groundwork for having the right to intervene in situations where the Western hemisphere would appear unstable both politically and fiscally to control Europe. The diplomacy failed as it was seen as it was not peaceful.
This means that the intervention was overthrowing one government and having military support. The other problem with the diplomacy was when the country was under Knox; the bankers of the time were forced to offer loans to the regime and were experienced by corruption. Another factor that had an effect on the American foreign policy was doctrine of containment. This is the foreign policy of America during cold war. It was as a result of responding to the Soviet Union movement to expanding their influence of communism. It collapsed towards the end of the cold war as they lost.
The aim of the foreign policy was to create conditions that the Americans would work and trade with other nations without coercion. This saw the need to create United Nations so as to intervene during the days of wars and ensure that peace prevails. All the above factors failed and it is these factors that were used to come up with the American foreign policy. They failed because they were used during the period that war was taking place and the foreign policy has not been changed much since then. This has led to the global crisis that is being experienced today. There were a lot of global crisis at the time and this has led to the reverse of the process today.
Tooze, R. (1988), ‘the Unwritten Preface: “International Political Economy” and
Epistemology’, Millenium 17:285-94.