How did William Howard Taft use U.S. economic power to address the issue of Latin American debt owed to European countries? (2 points)

Question

Responses

He provided economic incentives to encourage Latin American countries to repay their debts more quickly.
He provided economic incentives to encourage Latin American countries to repay their debts more quickly.

He helped Latin American countries boost exports to the U.S. so they could more easily afford to repay their debts.
He helped Latin American countries boost exports to the U.S. so they could more easily afford to repay their debts.

He paid off Latin American countries' debts to European countries so that they were indebted to the U.S. instead.
He paid off Latin American countries' debts to European countries so that they were indebted to the U.S. instead.

He forced European countries to forgive Latin American debt by threatening to go to war if they refused.

Answer 1

William Howard Taft used U.S. economic power to address the issue of Latin American debt owed to European countries primarily through the following approach:

He paid off Latin American countries' debts to European countries so that they were indebted to the U.S. instead.

This strategy was part of Taft's "Dollar Diplomacy," which aimed to extend American influence in Latin America and the Caribbean by encouraging investment and financial engagement, thereby securing U.S. interests in those regions.