What was 'dollar diplomacy' introduced by President Taft intended to achieve?

Dollar diplomacy, introduced by President William Howard Taft, aimed to use economic interests to strengthen American influence abroad, particularly in Latin America and East Asia. The primary goal was to encourage US investment in regions with unstable governments, thereby fostering stability and creating favorable conditions for American businesses. By supporting foreign governments financially, the United States hoped to prevent European intervention and promote a stable economic environment, which in turn would benefit US interests.

Through this approach, Taft believed that American investments would not only yield profits but also promote political and social stability in those nations. By intertwining economic progress with US foreign policy, dollar diplomacy sought to achieve a level of diplomatic and political influence by ensuring that investments would create dependencies that aligned foreign governments closer to American interests. This strategy contrasts with more direct forms of intervention, like military action, and reflects an era of US foreign policy that was increasingly seeking to leverage economic power for geopolitical objectives.