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What were the economic and social effects of World War 1?

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Economical and Social Effects of WW1
  • Due to WWI, Britain's role in international trade was severely diminished. This affected the British economy badly, especially the Staple Industries (Coal, Iron/Steel, Textiles etc).
  • During the war, the disruption of trade had led former overseas customers to Britain (i.e. Russia and the Far East) to reduce the amount of imports from Britain. In the Far East, markets for British goods had been penetrated by new competitors such as Japan who had already seperceded the British in industry
  • After the war, problems for British exporters worsened as foreign countries protected their economies with tariffs and govt subsidies.
  • Britain had accumulated £1 billion of debt because of the war, owed mainly to the USA
  • After a brief post-war boom, in the Winter of 1921-22 a slump set in as world demand contracted. The result of this was large scale unemployment in northern England, south Wales and south-west Scotland
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