War’s Influence on the Economics
School No 2086
Menshikova A.
Natalia Evgenievna Borodina
2016 year
War’s Influence on the Economics
I have chosen this topic because I don’t know much about this question and I want to look into it deeper. I know that many historical events can be explained with the help of economics, that’s why I am really interested in the interrelation of these two spheres in this particular area. I expect to discover the way that war influence on the economics, is it negative or positive. This project is a an opportunity for me to extend my outlook and knowledge.
There are some reasons why war sometimes influence on economics in positive way.
During a war a huge amount of infrastructure (bridges, roads etc.) is destroyed. This is that costs fantastic money and that people can’t do without.
So after any outcome of the war, it all is rebuilt. Just rebuilding already gives a big increase of GDP. Also destroyed a huge amount of property, cars, airplanes. And people after the restoration of essential infrastructure start restores their life goods. So, the economy generated enormous demand - State’s and People’s.
Psychological effect is no less important - people reduce their appetite after a war and agree to work for a minimal salary, so the unemployment decreases too.
These verdicts can be proved by the example of France after the First World War.
France before War
By the end of the XIX century France remains a country where agriculture dominated over industry and craft and small enterprises dominated over a large factory.
It was the industrialization process: in 1900, France smelted iron 2.7 million tons, and in 1913 -5.2 million tons, amount of steel in 1900 - 1.9 million tons, and in 1913 -... 3.6 mln. tons. Were developing new industries - automotive, shipbuilding, power generation increased.
But Industrialization took place in France, slower than in Germany, USA, England.
France after the First World War
Economics
Reconstruction works in the north and north-eastern departments, occupied during the war, contributed to the industrial growth, because these works were stimulating the development of raw material market, the equipment and new jobs, that’s why unemployment decreased too.
By the end of 1920 the industrial manufacture in France increased by 40%(!) in contract with before war.
Social sphere
In May 1920, it was suppressed strike of railway workers, and 20 of its members dismissed. It began systematically curtailing social reforms carried out during the war. The fight against the workers has turned into a protracted conflict and chronic nationwide and led to political instability in the country.
In April 1919 it passed a law on the introduction of an 8-hour workday in the factory industry. A special program has been developed, which provides for the conclusion of collective agreements with employers, unemployment benefits, pensions, work for old age, illness and disability.
Political sphere
In 1924 the relationships between the USSR and France are improved.
In the November 1919 parliamentary elections were held. The election campaign was held in a bitter struggle. All the right-wing parties united in the National Bloc, headed by Georges Clemenceau, the head of government. National Bloc opposed the Socialist party - the SFIO and some radicals.
National Bloc won, which program promised to save the country's "social and religious world", to keep order, to protect the republican system, to restore the areas, destroyed by war, to take care about the fate of former soldiers and war invalids. The most important point of the foreign policy part of the program was a requirement of strict compliance with the conditions of the Versailles Treaty, in particular the payment of reparations.
In 1920 Alexandre Millerand was elected as a president.
As you can see, if to replay on the above facts, we can say, that in general war influenced on the economics of France in positive way, made French economic system more successful and productive. One of the reasons is because after a war economy as a rule is being rebuilt, what let to avoid past mistakes and to achieve good results.
