3.1 Economic Impact of the First World War

Question 1

Elaborate on the inflation and urban supply issues.

Answer 1

• the war effort led to massive government spending
• this increased 8x between 1913-1916, no money coming in because no raw materials available
• to finance this, government printed out much more money
• ruble lost value and inflation happened
• urban areas faced severe fuel and food shortages because of transportation breakdowns and prioritizing of military needs

Question 2

Elaborate on the prioritization of the army over civilians.

Answer 2

• resources diverted to the front lines, leaving civilians with inadequate supplies (grain requisition caused famine/poverty)
• this led to a decline in living standards, increased mortality rates, and growing public discontent
• labour shortage because of conscriptions also contributed to this