Question

Which among the following statements is/are true about the impact of World War I on the British economy?

• A. Economies like US and Japan replaced Britain in the international market.
• B. War left Britain with a huge national debt.
• C. War left Britain with a rise in unemployment, decline in savings, and increasing inflation.
• D. The post-war policies helped in the recovery of the economy with a rise in exports and income levels.

Answer 1

Answer: (A), (B), (C)

War left Britain with a rise in unemployment, decline in savings, and increasing inflation.

The direct and indirect costs of the war on Britain was immense. The Allied powers won the World War I but were left with rising debts, inflation, and unemployment. The annexation of German colonies to Britain led to huge bureaucratic and logistical challenges. Britain did not imediately recover from the war. Its post-war policies failed to arrest the descent of Bristish economic power.