Inter war Economy
We have heard about war of kings
Two or more kings go against each other and fight.
There are lots of soldiers, horses and elephants involved.
The kings had to have lots of money and to be able to afford to pay hundreds of people.
Lots and lots of money is used in every war. Even the modern wars cost a lot.
Some wars are between many nations
One such war was the World War 1. This war took place from 1914-1918.
This war was mainly fought in Europe. Still, the impact was felt all through the world.
There were two power blocs (groups of nations) who fought against each other.
World war 1 had Allied powers on one side and Axis powers on the other.
The Allied powers were the nations of Britain, France, Russia and later joined by USA.
The Axis powers were nations of Germany, Austria-Hungary and Ottoman Turkey.
This was a modern Industrial war
When it started people didn't expect it to last long , but it stretched for around 4 years
This war was like no other. The nations were all Industrial nations.
They had modern powers of destruction with them. There was use of modern weapons and arms.
There was use of machine guns, tanks, aircraft, chemical weapons, etc. on a large scale.
There were millions of soldiers recruited (employed) around the world to fight in WW1.
There was a lot of destruction with around 9 million dead and 20 million injured.
Most of the dead and injured were young people. This led to the decline of European workforce.
There was poverty all around. There were more mouths to feed than hands to earn.
Industries during the war period had transformed to produce goods for war.
As men went into battle, women took up their jobs.
Now the situation was such that the countries which had trade relations were fighting each other.
Britain had to borrow large sums of money from US banks and US public.
US became Money lender on a global level now.
At the end of the war US had more properties and assets all over the world than rest of the world in US.
Britain faced great crisis after WW1
Britain’s economy was declining rapidly. On the other hand, many countries had already developed by then.
Countries like India and Japan were now competing in the International market.
Britain couldn’t dominate them in the markets now. Moreover Britain had lots of debt to pay back to USA.
During the war period there was an economic boom, due to high demand and supply.
After the war, demand and supply declined and unemployment rose to great heights.
One out of every 5 British workers was out of work in the post war period.
Jobs and supply of work was quite uncertain now.Even agricultural economy was in crisis.
Grain prices fell, rural incomes declined and farmers fell into debt.
This shows us how, even great nations like Britain are affected in the wars. No one is spared in such situations.