Principles for Dealing with the Changing World Order: Why Nations Succeed or Fail

by Ray Dalio

In March 1941, Congress passed the Lend-Lease Act, which allowed the US to lend or lease war supplies to the nations it deemed to be acting in ways that were “vital to the defense of the United States,” which included Great Britain, the Soviet Union, and China. Helping the Allies was good for the US both geopolitically and economically because it made a lot of money selling weapons, food, and other items to these soon-to-be-allied countries who were struggling to maintain production while waging war. But its motivations weren’t entirely mercenary. Great Britain was running out of money (i.e., gold), so the US allowed them to postpone payment until after the war (in some cases waiving payment entirely). Although not an outright declaration of war, Lend-Lease effectively ended the United States’ neutrality.