Transcript The Economic Impact of World War I

The Impact of World War I
(France, Germany, Great Britain, and the
United States)
The Economic Impact of World War I
 Ruined Europe’s 19th century economic
development
 “The war literally and metaphorically blew
up the achievements of a century of
economic advance.” (Niall Ferguson)
 Loss of trade
 Loss of foreign investments
 Subsequent losses due to economic
instability
Cost of World War I
Country
Great Britain
France
Germany
Italy
Russia
USA
Financial cost
(1918)
33,334,012,000
24,265,583,000
33,775,000,000
12,413,998,000
22,293,950,000
22,625,253,000
Germany
• Value of German trade with USA fell from 68 million to
10 million in one year
• Agricultural production fell about 50-70%
• Industrial output fell 40% from 1914-1918
• Following the war, reparations repayments devalued
the German economy
• Many people had saved marks during the war and
afterwards billions of dollars reentered the economy
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This situation led to hyperinflation
January 1918
$1 US = 5.21 German Marks
December 1923
$1 US = 4,200,000,000,000
Value of German currency fell
Great Britain and the United
States
 Previous to World War I, Great Britain dominated as
the world’s creditor
 During the war Britain became heavily indebted to the
US
 United States emerged from the war as a rival to Britain
as a financial superpower (Niall Ferguson)
 World’s financial center shifted from London to New
York
 US no longer was a debtor and became a creditor
nation
 The war stimulated the US economy
 Increased employment and wages
 Brought great profit to industry
The Home Front
 Impossible to
hide death
 Women in
mourning
 Badly wounded
soldiers returned
home
 Opposition began
to emerge
The war ends
 1917 – Russia
surrenders (a
separate peace)
 U.S. joins the war
on the Allied side
 Nov. 11, 1918
Armistice
Death Toll of War
Allied Powers
Central Powers
42 million served
23 million served
22 million casualties
15 million casualties
Social Impact
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Men lost limbs and were mutilated
Birthrate fell markedly
Invalids unable to work
Ethnic hostility
Influenza epidemic
Psychological impact
 “Never such innocence again”
 Bitterness towards aristocratic officers
whose lives were never in danger