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Depends of which Navy you're talking about. Britain, (the world super power of the time) had been financially drained by WWI and a series of social reform spending. She decided that the '..War to end all wars..' meant that she didn't need to rebuild. On top of this, the Admiralty (Navy Department) thought the navy was O.K. This was due to something called "The fleet in being". This is a measure of how many ships you have, where they are etc. It does not take into account the condition of those ships, if you have men to crew them etc. On paper, Britain still had the world's most powerful navy and nobody really bothered to get up off their bums and have a proper look. Meanwhile, a little place called U.S.A. figured that because Britain had a terrific navy and was the super power and that countries like Russia, France, Japan and so on all had powerful armies or navies, then she (U.S.A.) had better bring herself up to speed. Of course by the beginning of the 20th century, America was alot more powerful then anyone really gave her credit for. Even the American politicians thought she needed more 'grunt'. So here we have U.S.A. embarking on major industrialisation (Henry Ford and similar tyre kickers), U.S. Navy, farm and industrial machinery; while Britain (and her former colonies), France, Belgium and Europe in general were downsizing. Britain because she was spending elsewhere (and not watching what a young corporal in Germany was trying to do); Europe because it was pretty broke and suddenly along comes the Great Depression. So life wasn't really a 'bowl of cherries' for the guys in white ice cream suits as they watched their toys falling apart whilst the kids across the puddle in U.S. were getting new shiny ones and Adolf was sneaking some through the back door.

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Q: What caused the Naval reduction after World War 1?
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