USA by 1920: economic power; social and ethnic divisions; political reaction and renewed isolationism
By 1920, the USA had become the world's leading economic power. Yet deep racial divisions, fear of foreigners, and a desire to stay out of world affairs pulled the country inward.
Real World
By 1919, J.P. Morgan's bank had loaned Britain and France over $2 billion to fund the war effort, making the USA the world's banker and cementing its creditor-nation status for decades.
Exam Focus
Distinguish economic dominance from political power — examiners reward answers that show the USA was globally powerful economically yet retreating politically by 1920.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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