Explain the impact of the First World War on the British economy.

Question

Explain the three impacts of the First World War on the British economy.

OR

Explain the impact of the First World War on the British economy.

Answer 1

(i) After the war, Britain found it difficult to recapture its earlier position of dominance in the colonial market.

(ii) To finance war, expenditures, Britain had borrowed from the U.S. At the end of the war, Britain was burdened with huge external debts.
(iii) The war had led to a huge increase in demand, production, and employment. 

(iv) The government reduced bloated war expenditures to bring them into line with peacetime revenues.
(v) These developments led to huge Job losses. In 1921, one in every five British workers was out of work.