Why was the post war recovery (after the first world war) proved difficult for Britain ? Give answer pointwise.
Answers
Explanation:
➢ Post-war economic recovery proved difficult. Britain, which was the world’s leading economy in the pre-war period, in particular faced a prolonged crisis. While Britain was preoccupied with war, industries had developed in India and Japan.
➢ After the war Britain found it difficult to recapture the Indian market.
➢ To finance war expenditures Britain had borrowed liberally from the US. This meant that at the end of the war Britain was burdened with huge external debts.
➢ The war had led to an economic boom, that is, to a large increase in demand, production and employment. When the war boom ended, production contracted and unemployment increased.
➢ At the same time the government reduced bloated war expenditures to bring them into line with peacetime revenues.
➢ This led to huge job losses. Anxiety and uncertainty about work became an enduring part of post-war scenario.
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