Ww1 Economic Effects

In this essay I aim to discuss the economic effects of World War 1 that occurred in Europe in July 28 1914. It will outline the effects it brought in terms of increasing inflation, trade borrowings, regulations and tax Unemployment declined from 7.9 percent to 1.4 percent in this period, in part because workers were drawn in to new manufacturing jobs and because the military draft removed from many young men from the civilian labour force. Tariffs grew in the latter part of the 19th century but were largely overcome by technological advances and the free-trade areas within European empires. Trade restrictions mushroomed after WWI, exacerbated by the rampant protectionist policies adopted by the countries created by the break-up of
The war demonstrated the massive revenue-generating power of the income tax. Rates were raised to levels utterly inconceivable before the conflict. When the tax was enacted in the U.S. in 1913, the top rate was 7%. Before the war was over, it had topped out at 77%.
The war brought a high demand for steel ships and many St. John's merchants profited by selling their vessels. This directly impacted the shipping of supplies to Newfoundland and Labrador. Consequently, people experienced shortages of some supplies and higher prices for others (web3).

By 1918, almost a quarter of the colony's revenue was needed to pay the interest on its loans. In addition, government now faced the cost of paying pensions to returning servicemen. This increasing public debt would have major effects on Newfoundland and Labrador both in the short and long term. To help cope with the debt, government introduced both business and personal taxes. At the time, the public thought that this personal income tax was a temporary measure