History World War I Questions
The impact of World War I on the economy was significant. It led to a massive increase in government spending and borrowing, as countries mobilized their resources for the war effort. This resulted in inflation and rising prices. Many industries experienced a boom due to increased demand for war materials, while others suffered due to labor shortages and disruptions in trade. The war also led to the destruction of infrastructure and loss of productive capacity, causing long-term economic consequences. Additionally, the war contributed to the rise of new economic powers, such as the United States, and the decline of traditional economic powers, such as Britain and Germany.