World Wars and the Economy
“It was an industrial war where a country’s whole economic output was geared to war; a war of empires that pulled combatants from nations across the globe. It was a war of land, air and sea, a war of politics, espionage and also the Home Front…this was total war”
- Rupert Colley
Wars cause excessive disruptions to economies, generally impeding on economic development and prosperity (Mokyr 2003). They require national redirection of resources to wartime activities, being both human and capital. As a result, wars are increasingly expensive, causing severe shocks to the economies of countries involved. World War I was named the ‘Great War’ as it was the first time in history where so many nations were involved, who
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devoted every aspect of their possible output to war. Lingering effects from World War II saw the world struggle to recover from terrible losses. The Path to War From around 1850 to 1914, European nations were using their resources to ascertain less developed parts of the world for their empires (Ross 1997).
Britain being the most successful imperialist nation had occupied the largest amount of land, battling against Russia and France for more. With the emerging threat of Germany seeking to aggressively increase their influence outside of Europe (Grant 2013; Broadberry & Harrison 2005), Britain, France and Russia had formed an alliance (Ross 1997). The threats to British position and the ensuing tension between European nations had invariably led to conflict.
The Arms Race
“The accelerating arms race is transforming the armed peace into a crushing burden that weighs on all nations…[and] will lead to the very cataclysm is seeks to avert”
- Tsar Nicholas II
Many have contended that the Arms Race in Europe during the late 1800s would lead to war instead of preserving peace (Ross 1997; Grant 2013). In 1890, Germany attempted to combat the British world leading naval force by producing new warships - Britain in turn built bigger and more powerful ships and so on. This military escalation is what is believed to have made war inevitable (Keegan 1999). As one nation increased its military power, so too did their enemies to keep the balance of power. By the beginning of WWI, Britain, France, Germany, Russia, Italy and Austria-Hungary had spent over 398 million pounds on their militaries (Llewellyn, Southey & Thompson
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2014). As well as employing resources to their armies, nations formed alliances in the wake of tensions in Europe.
With concerns of their alliance causing further tension, British and French militaries began working together to defend their countries if there was a German resistance (Grant 2013). Militaries across these nations were preparing to mobilise their men if the time came (Ross 1997).
The Outbreak of War
On June 28, 1914, a young Serbian, Gavrilo Princip assassinated Archduke Franz Ferdinand, heir to the throne of the Austro-Hungarian Empire, and his wife (Ross 1997). Austria-Hungary gave Serbia an ultimatum which would ultimately secure Serbia as an Austrian-Hungarian nation (Dowling 2007). Serbia refused to accept all the clauses of the agreement, and so Austria-Hungary declared war on Serbia on 28 July 1914 (Ross 1997; Grant 2013). At this point, Russia declared war on Austria-Hungary
France (ally of Serbia) declares war on Austria-Hungary. England helped France, Germany helped Austria-Hungary.
Economic climate during wartime
Recovering from “the war to end all
wars” “The danger confronting us, therefore, is the rapid depression of the standard of life of the European populations to a point which will mean actual starvation for some (a point already reached in Russia and approximately reached in Austria)” - John Maynard Keyes Treaty of Versailles The economic impact of the war was foreseen by Keyes. The Versailles treaty was a treaty of peace between the Allied nations and Germany which, among other things, required Germany to pay 6.6 billion pounds for the consequences of the war (History Channel). Keyes (1920) argued that the treaty was too harsh, and didn’t include any means for the economic rehabilitation of Europe, stating that the members signing were blind to Europe “starving and disintegrating before their eyes”. The treaty was merely a way for the Allies to divide European and other territories amongst themselves (see appendix?) – while denying Italy and Japan of the land they had hoped for (History Channel). Germany was suffering from mass unemployment and debt, as well as famine and homelessness. The treaty made it extremely difficult for German’s economy to cope – they were stripped of some of their colonies which provided them with sources of income. Consequently, their industrial production was severely reduced 258,854,000 metric tons of coal near the end of the war to 180,474,000 by 1923; iron ore output dropped from 18,392,000 tons to 5,118,000 tons; steel production fell from 14,092,000 tons to 6,305,000 tons (Olsen).
Along with all the tensions on the rise, the Great European powers further expanded their armies and navies. The expansion of the armies and navies led to an arms race that increased suspicion and made the war even more likely.
He felt that several forces of opposing countries took part in fighting each battle and ultimately believed that global opposition caused the Great War. Similarly, in the Balkan Region, several ethnic minorities desired independence from Austria-Hungary. As shown in Document 3, the Austro-Hungarian government demanded that action be taken regarding propaganda against Austria-Hungary. This ultimatum was a result of the assassination of Archduke Francis Ferdinand, who was killed by a Serbian nationalist. Russia, a large Slavic nation, has close ties with Serbia.
Otto von Bismarck, the Chancellor that led the unification of the German states, did not like the fact that Germany was between Russia and France. “Bismarck formed the Triple Alliance between Germany, Austria-Hungary, and Italy in the year preceding World War 1” (Ch. Imperialism is the way of spreading a country’s power and influence through military force or diplomacy. Great Britain and other European countries took over many countries, making empires. According to Document E, Great Britain has taken over the seas and some countries.
"World War 2 was a war fought in two distinct phases. The first was the last war of a new generation. The second was emphatically the first of a new era" .
The Naval Arms Race was a major factor of World War One. In a parliament speech made by Sir Edward Grey (the British Foreign Secretary), it is stated,
From 1939 to 1945 the majority of the world’s nations were part of a long deadly six-year war, World War II. These included two strong powerhouses, Great Britain and The United States. Millions died world wide, declaring World War II to be the most expansive war to date. The Holocaust, and the use nuclear weapons resulted in such a high death toll. Nations were in a state of “total war,” involving not just the military but also the entire nation. Civilians were aggressively aiding in supporting their military, creating a home front, making a significant impression on the result of the war. Rationing, defense and manpower were concerns for governments; and they made any economic and industrial change to support their efforts in aiding their nation and military.
An Evaluation of International Imperialism, the European Arms Race, and Militarism in the Origins of First World War
In effect, nationalism was also a contributing factor to the alliance system. No country feels comfortable being in a war alone, and with the growing militaries in almost every country, allies provide much comfort. The supreme present of militarism, "a policy of aggressive military preparedness", in this period of time gave all countries great reason to feel the heavy weight of an oncoming war. Great Britain's naval policy (to always be twice as big as the next two largest navies put together), along with the predominate feeling of war, provided countries with a strong reason to try and create an incredibly strong military force. This led to an arms race, which made the impending war seem inevitable.
To carry on, prior to World War I, numerous wars such as the American Civil War, the Napoleonic Wars, or the Opium War of China had been fought, but mostly for the sole purposes of territorial expansion or acquiring resources. However, “World War I was greeted with incredible enthusiasm. Each of the major belligerents was convinced of the rightness of its cause, demonstrating the power of nationalism.” (William J. Duiker and Jackson J. Spielvogel, World History, vol. 2, 667). After the Franco-Prussian War of 1870, the views of war changed drastically, and a new romantic idea about the war was born. War was now perceived as a great opportunity to prove an individual’s or nation’s greatness. “Now, God be thanked Who has matched us with His hour,
Carl von Clausewitz, “What is War?” On War. Edited and translated by Michael Howard and Peter Paret, 139. Princeton, NJ: Princeton University Press, 1976.
Going in to war, Britain is interested in territorial expansion in Europe and sees France as a
World War 1 was called “The Great War”, “The war to end all wars”, and “The first modern war”. It had many causes and a few repercussions and I will describe them in detail.
To conclude the Great War encompassed all factors of a total war; economic, social and political. The whole population was mobilized towards the war effort and everyone’s attention concentrated on winning the war. Being one of the first total wars in history, it showed that wars are not always conflicts of armies against armies, but rather conflicts of societies fighting societies. Britain had to create harsh laws, mobilize the entire population and use all accessible resources to defeat the triple alliance. Therefore, there is no doubt that World War I fulfilled all characteristics of a total war
If we define “Total War” as a type of warfare that affects and involves every part of a society, then World War I can be argued to be the first attempt by military and political leaders to engage in such a conflict. Modernity was at Europe’s door thus leading to the inventions and innovations that would allow for war on a scale, and of a scope, that had never before been considered. Yet, it was not the fact that these innovations and technologies existed, or that specific conflicts necessitated war, but rather that the political and military elite, coming out of an age of pompous militarism, made decisions based on previous experiences and not on future possibilities. These decisions had an adverse affect not only on the outcome of the war politically (as far as treaties and borders were concerned), but it affected individuals at a grassroots level creating a subsequent era of distrust, listlessness, and eventual aggressive feelings creating the perfect storm out of which Nazism could rise.
...may have prompted the start of the Great War, but the high losses and sufferings of the soldiers, as seen in Erich Remarque’s All Quiet on the Western Front, will never be justified by the reasons for war. Conflicts between countries are an inevitable thing, as there are multitudes of differences between all cultures and nationalities. Even so, there are few causes where a country is justified in going to war over. If there is a dispute between countries, it is usually not important enough for multiple nations to wage total war against each other. War causes a huge loss of life, and no successful cause can fully justify the amount of ambition, memories, knowledge, and futures that may be lost in the process.