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According to the Treaty, Germany had to take responsibility for the war. This angered Germany and contributed to World War II.

In the period just after Germany's surrender, Woodrow Wilson was confident about achieving a just peace. Both Germany and the Allies had publicly accepted his Fourteen Points, containing his ideals of the new world order, as the basis for negotiations conducted in Paris. The Treaty of Versailles, signed with Germany in a suburb of Paris and ending the First World War, was not what Wilson expected, with its war guilt clause and reparations. He believed that the League of Nations, which was added to the various treaties ending the war, would redeem the failures of the Paris Peace Conference.

But the US never joined the League of Nations because Congress never ratified the Treaty of Versailles. Serious problems with Republicans and a presidential failure to compromise ended with the rejection of the treaty by the Senate. When the Treaty of Versailles was voted down for the last time, Wilson's dream of a new world order died.

The end of the war brought no respite from the forces that divided American society. Workers were determined to regain the purchasing power they had lost to inflation. Employers were equally determined to halt or reverse the wartime gains labor had made. Radicals saw the possibility of a socialist revolution. Black servicemen were reluctant to return to their inferior prewar status. The "red scare" prompted government officials and private citizens alike to embark on a campaign of repression.

But in many ways, the United States benefited a great deal from the war. By 1919, the American economy was the world's largest by far. Many leading corporations improved productivity and management techniques, and American banks were highly influential in international finance. This combination of economic factors triggered an extraordinary burst of growth in the next decade. The war, however, exposed class, ethnic, and racial tensions that did not go away.

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