Ww1 Economic Effects

In this essay I aim to discuss the economic effects of World War 1 that occurred in Europe in July 28 1914. It will outline the effects it brought in terms of increasing inflation, trade borrowings, regulations and tax Unemployment declined from 7.9 percent to 1.4 percent in this period, in part because workers were drawn in to new manufacturing jobs and because the military draft removed from many young men from the civilian labour force. Tariffs grew in the latter part of the 19th century but were largely overcome by technological advances and the free-trade areas within European empires. Trade restrictions mushroomed after WWI, exacerbated by the rampant protectionist policies adopted by the countries created by the break-up of
the Ottoman, German and Austro-Hungarian empires
As part of the war effort, the U.S. government also attempted to guide economic activity via centralized price and production controls administered by the War Industries Board,
Technology experienced a great boost after the war, as the production of automobiles, airplanes, radios and even certain chemicals, skyrocketed. The advantages of mass production and the use of machinery to perform former human labour tasks, along with the implementation of the eight hour work day, proved to stimulate the economy, the United States' in particular. However, much of Europe suffered devastating losses of physical property and landscape as well as finances. By 1914, Europe had won the respect of the world as a reliable money-lender, yet just four years later was greatly in debt to her allies for their generous financial contributions toward the war effort, owing them as much as $10 billion(web2).
In an effort to pay back their allies, the governments of many European countries began to rapidly print more and more money, only to subject their countries to a period of inflation. Members of the middle class who had been living reasonably comfortably on investments began to experience a rocky financial period. Germany was hit the hardest in terms of struggling with war reparations, and inflation drastically lowered the value of the German mark. In a period of no more than three months in 1923, the German mark jumped from 4.6 million marks to the dollar to 4.2 trillion marks to the dollar. It appeared that inflation knew no bounds.
People could easily migrate; the migrations of people in the 19th century were enormous, far larger, relatively, than those of today. Restrictions were non-existent, and passports barely existed. If you wanted to move to another part of the world, the only barrier to doing so was the cost of travel, which became cheaper and cheaper. We’ll not experience such ease of movement ever again(web3).
Tax also lead to an economic break down.
The war demonstrated the massive revenue-generating power of the income tax. Rates were raised to levels utterly inconceivable before the conflict. When the tax was enacted in the U.S. in 1913, the top rate was 7%. Before the war was over, it had topped out at 77%.
The war brought a high demand for steel ships and many St. John's merchants profited by selling their vessels. This directly impacted the shipping of supplies to Newfoundland and Labrador. Consequently, people experienced shortages of some supplies and higher prices for others (web3).

By 1918, almost a quarter of the colony's revenue was needed to pay the interest on its loans. In addition, government now faced the cost of paying pensions to returning servicemen. This increasing public debt would have major effects on Newfoundland and Labrador both in the short and long term. To help cope with the debt, government introduced both business and personal taxes. At the time, the public thought that this personal income tax was a temporary measure
(web4).