Question

explain the impact of the first world war on the british economy .

Answer 1

The British economy suffered a lot due to the First World War.

1. Britain spent between 15-25% of it's accumulated wealth fighting the first world war.
2. It borrrowed very heavily, especially from the United States, and was lumbered with massive debts after the conflict.
3. During the war Britain could not produce goods to sell to foreign markets, after the war, Britain found that many of it's previous buyers had set up their own industries and no longer needed to buy from Britain.
4. Important industries like coal mining failed to modernize during the war.
5. During the war, British farmers had been encouraged to grow more crops. After the war, the farmers had excess stock due to which prices declined. Farmers, therefore, suffered.