discuss the impact of the first world war on the world economy
Answers
The Great War 1914-1918 was universally destructive. The effects of these were seen in many areas, as in the destruction of human life and property, and in the political, social and economic fields. The evolution of capitalism and progress in the scientific spheres were also important consequences.
It is estimated that in the four years of war, some eighty lakhs of people were killed and as many wounded. Some 8-10 lakh people were reported missing.
In most countries, after this Great War, monarchy came to an end. Democratic Governments were established in these countries. The authorities recognized the people's rights.
Lot money was spent in this war. After the Great War, the prices of articles went up. Starvation stalked the world. The government restricted the price of the commodities. Huge taxes were imposed on people. Many mills and factories were established. The workers launched movements for the recognition of their rights.
Almost all countries were so heavily burdened that for years together their path of progress remained impeded.
This war also had important social consequences. There was progress in the sphere of women. Even European Christianity had no impact on the Great War. For politics came to eclipse religion. All known religious dogmas were shattered. This apart, narrow-minded radicalism was given up and a sense of fraternity was born in the people.
For the short term effect the US economy grew in the buildup to the war and during its prosecution. From 1915 the US made tons of loans to the UK to help them in their war effort. It is not a stretch to say that WWI was the major factor in contributing to the "Roaring 20s" when the US economy boomed. After the peace the economy dropped temporarily and this is most likely attributable to the stopping of war material production. However, at that point in the timeline the US was the only country that had not been completely devastated by the effects of the war. US companies were able to expand their reach around the world, and domestic consumption in the US increased, hence the name "The Roaring 20s." So the short term effect (I am defining short term effect as within one decade) was that the US economy grew a large amount due to their involvement in WWI.
The long term effect was that US involvement in the war lead directly to the Great Depression and WWII. The Treaty of Versailles led to a system where the US was cashing in its wartime loans to the UK, which in turn was using the wartime reparations it received from Germany to pay off the US. This system collapsed when the Germany economy succumbed to hyperinflation and died. That paired with Black Tuesday, which was driven by rampant stock speculation from tons of US citizens flush with cash led to the Great Depression. Since the world was still reeling from the effects of WWI when Germany fell, everything else fell apart. This event was directly attributable to WWI.
So in short there was a huge effect on the US economy in the short term which lead to the Roaring 20s, but the growth was short lived as it was built upon the same conditions that brought about the Great Depression.
hope this will help you.