Impact Of WW1 Flashcards
How much did WW1 cost the empire in comparison to the Boer War?
WW1: estimated £3.5 billion
- 1.3 times as much as for Boer War, which was already regarded as a lot
How many soldiers and Britons died in WW1?
Almost a million Britons and 200,000 soldiers from all across the empire
Why was Britain left in severe debt following WW1?
Huge amounts of public finances were directed towards the war effort
What happened to the gold standard during WW1?
. Pound sterling had to be removed from the gold standard during WW1as gold reserves ran so low
- considered a measure of a ‘last resort’
- the gold standard was meant to keep a stable value on British currency backed by gold, but suspending this shows that the empire struggled to hold up a stable economy, seeming weak
How did British wartime production damage the trading power of the empire?
. Britain prioritised wartime production during the war over producing goods to be exported overseas.
. This meant that Britain received competition (especially from USA and Japan) in markets that their exports usually dominated
. Not all of these overseas markets were won back after the war
How were Britain’s traditional industries such as textiles, shipbuilding, iron and steel damaged between WW1 and WW2?
. There were industrial shifts during and after WW1 as the war led to the decline of traditional industries, except shipbuilding and munitions which temporarily increased during WW1, but then contracted post war.
These ‘British’ industries faced fierce overseas competition, such as from Japan in textile production.
How did WW1 damage the British financial sector?
As this sector of banks and financial institutions relied on lending money to overseas institutions to make profits, the vast overseas economic territories of the empire became a burden to Britain as they struggled to pay for lending money to all of these territories. This meant Britain struggled to support international trade
Why were much of Britain’s capital investment overseas wiped out by the war and what did this mean?
. They relied heavily on borrowing money to fund the war effort, especially from US. This meant that Britain had to sell off many profitable overseas investments to pay this back as they were in debt.
. The war led to serious devaluation of many currencies of countries that Britain had investments in. This meant that there was much less income when converting back to sterling for Britain.
. Britain’s status as a financial power had shifted to America, so it was difficult for Britain to exert influence over international financial markets and made it difficult for Britain to secure new investments abroad
. The decline of the British pound as a universally stable currency due to the suspension of the gold standard undermined the profitability of many overseas investments that had been supported by the international stability of the sterling during the gold standard.
Overall: Britain were no longer the global financial power they once were, and the economic impact of the war led them to realise the importance of the empire to Britain’s economy
How did the Great Depression intensify Britain’s economic problems after WW1?
. International trade and markets for British industrial exports collapsed
. A financial crisis in 1931 kicked Britain off the gold standard again
- overall, this reduced earnings from overseas investments as many countries devalued their currencies during the Depression to boost exports.
How much did India economically contribute to the war efforts in Britain and what was the consequence of this?
Almost £146 million
- resulted in inflation from printing more money to fund war efforts
- meant India experienced shortages during the war as their spending went to the war effort
How did India economically do okay in moving away from empire in the long-term after WW1?
. 1914 - 2/3 of Indian imports came from Britain
- this fell during war due to trade disruption
- fell further in the long term due to growing economic strength of foreign rivals
. This meant Indian manufacturers began to capture more of the domestic markets
How was Indian industry protected against competitors after WW1?
. Britain determined to get revenue to cover wartime expenditure and strengthen control in India in face of rising nationalist movement
. British placed taxes on Indian imports
- 1917: 11% tax
- 1931: 25% tax
How did Canada fare economically after WW1 and how did this affect the empire?
. Emerged as an industrial power, increasingly looking to the USA for investment and markets as the inter-war period progressed
- the USA were becoming a greater economic power than Britain
- Britain manufacturers lost ground and influence here like in India, making the empire seem weak
How were Australia and New Zealand (parts of empire) affected by WW1 economically?
Relied heavily on British markets as they were exporters of food
. The disruption of trade during the war therefore hit them hard
How did British leaders during WW1 seem to blunder in their view of how the war would go?
Churchill and Kitchener made arrogant decisions during the war
Most British leaders believed it would be ‘over by winter’
Anticipated that the war could be fought by British themselves, with limited help from empire
