What was the economic result of demobilization in 1920 America on war supply industries and cancelled arms contracts?

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pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Right after World War I, the US economy went into a bit of a recession.  This was largely because of the fact that the war had ended.  So the result, I'd say, was the recession.

As you mention, the end of the war led to a number of problems.  Factories that had been working at full speed producing weapons and such were suddenly put out of business, for example.  And this loss was not made up for by other kinds of business, especially not right away.  This is partly because foreign countries were no longer so able to buy things from the US.

krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

Posted on

The world War I ended in 1918, and the demobilization efforts after the war continued up to maximum 1919. Thus there was hardly any demobilization activity in 1920's.

Period immediately after World War I is marked by economic recession in many countries including USA> However impact of such recession in USA was very brief lasting for less than a year. and which did not extend beyond first quarter of 1919. There was another comparatively more severe recession in 1920, but this had no lasting effect on economy. As a matter of fact the economy boomed after that, and this period of American history, for this reason is known as "Roaring Twenties".

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