Economical Effects of World War I on Involved Countries

http://www.english.illinois.edu/

World War I had huge economical effects on the countries that were involved in it. The US had spent a lot of money in their efforts to assist the Allies in their fight against the Axis. “The economical role of the United States in the war effort was crucial. The country spent as much money in the war is it did on all the expenses of the government from 1971 to 1914.”. This just shows how without the US on the allied side, the war could have had a much different turnout. “By June 39, 1919, the government had had spent about 28 billion dollars directly for the war and had lent its allies nearly 10 billion dollars.”. This further backs up the point that the US was crucial in winning the war, as without that funding, the Allies would not have nearly had as much technology and firepower versus the Axis.

Although there was a lot that was going on the US economically, Europe experienced many more of the changes. Germany was hit very hard, and they were blamed for the war after it was over. Germany had to also surrender and pay for damages, and had their resource production stolen from them. “In 1922 Germany fell behind in its reparation deliveries of Coal. To enforce payment, in January 1923 France and Belgium occupied the Ruhr coal and iron district on the right bank of the Rhine.”. Since Germany was unable to make payments as due, other countries stole their coal mines which left Germany in need of coal. “In the economic panic that followed, German money became worthless and many Germans were financially ruined.”. This shows the effect that the war had on Germany. Being forced to pay for damages and with reduced resource production, Germany fell into a large situation, as they were unable to repay back their debts and German citizens were unable to make any money to survive. A solution needed to be devised, as it seemed like Germany was being punished too harshly. “The report that Dawes wrote came to be known as the Dawes Plan. It called for more reasonable reparations payments by Germany and also established a new German currency and a new Reichsbank.”. Germany had to create a new form of currency and had a reestablished bank, which made their money worth something again, and got German citizens back n their feet.