What were some economic consequences of World War I?

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The Great War, or World War I, had remarkable economic consequences on the economies of United States, Europe, and by extension, the entire world. The United States actually was in better economic shape after the war than at any time in its history. The industrial and agricultural economy had been...

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The Great War, or World War I, had remarkable economic consequences on the economies of United States, Europe, and by extension, the entire world. The United States actually was in better economic shape after the war than at any time in its history. The industrial and agricultural economy had been mobilized to supply the Allied and American war effort. In addition, American banks loaned large sums of money to Britain and France before and after the war. For these basic reasons, the United States emerged as an industrial power after World War I.

The war did not have the same positive effect on Europe. The economies of Britain and France were slowed by crippling war debt. These countries would recover somewhat in the 1920's. Germany, however, was a different story. The Weimar Republic was handcuffed with heavy war reparations to pay to France and England. Hyperinflation and unemployment had disabled the German economy. American banks bailed out Germany with $200 million in loans under the Dawes Plan, but this recovery would be short lived as the United States was plunged into an economic depression in the 1930's.

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