The Economic and Technological Impact of World War I Original File: John F. Kennedy High School. 11 Feb

The Economic Impact of World War I Ruined Europe’s 19 th 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 Country Financial cost (1918) Great Britain 33,334,012,000 France24,265,583,000 Germany33,775,000,000 Italy12,413,998,000 Russia22,293,950,000 USA22,625,253,000

Germany Value of German trade with USA fell from 68 million to 10 million in one year Value of German trade with USA fell from 68 million to 10 million in one year Agricultural production fell about 50-70% Agricultural production fell about 50-70% Industrial output fell 40% from Industrial output fell 40% from Following the war, reparations repayments devalued the German economy 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 Many people had saved marks during the war and afterwards billions of dollars reentered the economy This situation led to hyperinflationThis situation led to hyperinflation January 1918$1 US = 5.21 German MarksJanuary 1918$1 US = 5.21 German Marks December 1923$1 US = 4,200,000,000,000December 1923$1 US = 4,200,000,000,000 Value of German currency fellValue 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

Technological advancements (civilian) The automobile was an important and prosperous change, especially with the American public. The impact of the car was enormous as it increased efficiency in the work force.

Radio and Washing Machine The radio provided an additional luxurious item. It increased morale of the population. Washing Machines increased the efficiency output at the household which would predominantly be the females. It also increased hygiene which increased life expectancy.