How Important Were Economic Factors in Shaping American Foreign Policy Between 1890 and 1917?

Between the years 1890 and 1917, the US experienced a significant change in its foreign policy. These changes represented a transition from isolationism to expansionism. Indeed, the US was able to make many countries dependent on the dollar and more than able to protect its own trade interests. These changes were largely due to economic factors which allowed for an increase in trade and also in the creation of new markets for exports. However, despite the pivotal role economic factors played in the adoption of expansionism, it must also be remembered that various other factors such as strategic reasoning and social influence contributed heavily as well.

Economic factors undoubtedly played a crucial role in the shaping of American foreign policy between 1890 and 1917. We can consider a plethora of examples that support this claim. Firstly, the Spanish American War was fought partially due to America’s wanting Cuban resources, primarily sugar and tobacco, to boost its own trade. After winning the war, the US was also granted control over the Spanish colonies of the Philippines and Guam. The US was thus able to further improve its trading activities as it now had easier access to China’s ports via these island nations. The first of several policies introduced during this time period is the Platt Amendment which authorized American intervention in the international and domestic affairs of Cuba and other parts of Latin America. This enabled the US to enter new markets and yet again, protect its trade interests. The Open Door policy encompassed the idea that all countries should be able to enjoy free and equal trade with China. The Dollar Diplomacy allowed for greater economic domination of Latin America and China. This resulted in several countries such as Honduras, Nicaragua and China becoming dependant on the dollar. The Roosevelt Corollary, introduced in 1904, likewise allowed the US to defend its trade interests; it enabled America to exercise international policing power. In attempts to increase trade with Latin America, the US also began the construction of the Panama Canal in 1903. In addition to allowing for more effective communication with Latin American countries, the Canal also led to quicker sea journeys for exports. In 1905, American intervention in the Russo-Japanese War once again enabled the US to protect its trade interests by ensuring that Japan’s influence in the Pacific did not grow too great. Lastly, the US also joined another war, the First World War, to safeguard its trade interests, it fought alongside Britain to ensure that its trade with Britain was not diminished.

Despite the significance of economic factors, we can argue that other factors such as strategic reasoning also played vital roles. The Spanish American War, for instance, was a huge tactical play on America’s part. The US was after all in the process of founding an empire and the acquisition of Cuba, the Philippines and Guam won during