In this content we will learn about what is dollar diplomacy in us history so you know the dollar is great for America and for many years Taft used it to protect American business.
There used to be times when the United States was using different methods for dealing with other countries as of today.
Today’s topic is what is dollar diplomacy in us history
As like other countries, America always makes sure that our business is always safe in our homeland and in foreign soil too.
Due to the rise in the demand for the dollar,it became the world reserve currency but you know it was adopted as the world reserve currency due to the Bretton Woods agreement which happened in the year of 1944.
- Dollar diplomacy
- Big stick vs Taft’s foreign policy
Dollar diplomacy
Dollar diplomacy was a kind of foreign policy where America used financial means to achieve its goals . But it didn’t work out as planned, that’s why they have to change their foreign policy .
Dollar diplomacy was implemented by William Howard Taft who believes that we can change the financial situation of our nation as well as of its southern neighbours and of Caribbean nations by just dollars.
He had arranged meetings with all the big American companies along with bankers so that they could be prepared to open their company in some Caribbean nation and in Latin American countries.
William Howard Taft was very brave in taking bold financial decisions that’s why he was elected as president of the United States but the thing is that he served for just one term.
The main purpose of implementing this was to make sure that European power of that time stayed away from the western hemisphere but still many Latin Americans countries and some Caribbean nations were in debt .
These nations took giant loans from the European nation so that they could build their railroad and many other things so that they could thrive but they weren’t able to pay off the debt.
In some way this policy was successful In pushing Europe out of any American Continent because the policy maker was concerned that Europe might again intervene in the matter of america.
- America always tried to protect it business in any foreign country
- Dollar diplomacy was used by William Howard Taft to maintain peace in western hemisphere
- He became president for just one term because his policy was not so good as said by many people
- He used dollar as means to influence the economy of many Latin America and some Caribbean nation
- The main purpose of implementing this concept was to push European power of that time out of western hemisphere
Big stick vs Taft’s foreign policy
Theodore Roosevelt used big stick diplomacy foreign policy during his term, he would say things like speak softly but carry a big stick .
What he means by that is always try to avoid having disputes and make sure to maintain peace by negotiating with them but if they don’t agree with your proposal then still try to have talks with them.
If they still refused then you already have a big stick that is the military and strong navy and yeah used it to get the things you wanted from them ; he was fond of few African proverbs and speaking softly and carrying a big stick was one of them .
But William Howard Taft who became president after Theodore Roosevelt, his foreign policy was totally different from big stick diplomacy.
He believed instead of using military power to intervene why not use financial power to influence the economy ; William h. Taft believed in using dollars instead of bullets.
Philander Knox, who used to be secretary of state, proposed to fund the railroad construction in the Manchurian region of China which was controlled by Eastern power of that time.
He tried many attempts to fund it but it always got unapproved by Japan; you know railroad was important to move things for American business because of the first open door policy which was signed in 1890’s.
Dollar policy failed in every nation whether it was in Manchuria,Mexico or Columbia but you know it was successful In just one nation and that was Nicaragua.
This dollar diplomacy was termed as a complete failure by the policy makers of that time. That’s why we discussed that he was not elected as president of the United States for a second term.
Due to this policy; United States deteriorated its relationship with its neighbouring countries in so many ways like American business used to buy a lot of land in many Latin American countries and in some Caribbean nations too .
They used to grow bananas there and not only that there were dozens of big companies who were operating in those nations but you know they got so much influence in their country’s economy that made their citizens stand up against us.
America helped these countries to pay off the debt which they owed to the European power but at some terms and conditions such as they have to welcome American business.
Many of the economists from the Caribbean nation and from the Latin American countries classified this dollar diplomacy as financial imperialism .
- Theodore Roosevelt was known for many things but one of the most controversial things was his big stick diplomacy
- Theodore Roosevelt helped to make our navy stronger
- William Howard Taft always opposed the big stick policy
- He said things like dollar instead of bullet
- According to many economist he wasted more than $1 billion dollars us taxpayers money in Mexico alone but didn’t get the results as he wanted
