The conflict had its roots in the worsening socio-economic and military position of Spain after the Peninsular War, the growing confidence of the United States as a world power, a lengthy independence movement in Cuba and a nascent one in the Philippines, and strengthening economic ties between Cuba and the United States.

[16] The Spanish–American War catapulted Theodore Roosevelt to the presidency,[17] marked the beginning of the modern United States Army,[18] and led to the first establishment of American colonies overseas.

This trauma led to the rise of the Generation of '98, a group of young intellectuals, authors, and artists who were deeply critical of what they perceived as conformism and ignorance on the part of the Spanish people.

No longer spending large sums to maintain its colonies, significant amounts of capital were suddenly repatriated for use domestically.

[22] This sudden and massive influx of capital led to the development for the first time of large, modern industries in banking, chemicals, electrical power generation, manufacturing, ship building, steel, and textiles.