Economic Aspects

During World War I, economies shifted significantly as nations redirected resources towards the war effort. Governments increased spending on weapons, supplies, and troops, often leading to higher taxes and national debt. Factories transformed to produce military goods, stimulating some industries while others suffered due to workforce shortages. Trade routes were disrupted, causing shortages and inflation in many countries. Additionally, the war’s devastation affected agricultural production and infrastructure, leading to food scarcity. After the war, economic instability and reparations imposed on Germany contributed to the Great Depression, reshaping global economies for years to come.