What was the main goal of Taft's Dollar Diplomacy?

• A. To promote democracy in Latin America
• B. To ensure the independence of small nations
• C. To make countries economically dependent on the U.S.
• D. To oppose European colonialism in the Americas

Answer: (C)

The primary goal of Taft's Dollar Diplomacy was to make countries economically dependent on the U.S. This approach aimed to use American financial power to extend U.S. influence and secure political stability in Latin America and East Asia without direct military intervention. By providing loans and investments to countries, the U.S. hoped to create favorable conditions for American businesses and ensure that these nations would align with U.S. interests. This economic strategy was based on the belief that strong economic ties would lead to political stability and prevent the spread of European influence in the region.

In contrast, promoting democracy or opposing European colonialism were not the central tenets of Dollar Diplomacy; those ideologies were more characteristic of other foreign policies during different administrations. Ensuring the independence of small nations also does not reflect Taft's focus on expanding economic control over weaker states through financial means. Thus, the emphasis on economic dependency captures the essence of Dollar Diplomacy and its intended outcomes.