Summary:
This paper comprises the oldest historical study of the series, and examines an unsuccessful strategic reset initiated by American President William Taft in 1909. This mercantilist strategy, known as ‘Dollar Diplomacy’, prioritised financial and economic tools of statecraft, including the use of generous loans and the promotion of stronger commercial ties with foreign populations. The paper presents a cautionary tale that demonstrates the importance of striking a balance between different tools of statecraft, the dangers of mismanaging regional pivots, and the costs associated with undertaking a reset without broad domestic support. In Taft’s case, the mismanagement of the political economy of a pivot towards another region, undertaken without the support of Congress and public opinion, proved to be a folly.
