| The First World War was a serious war spread to the whole world. There were 1.3 billion population involved in this war. We called it The Battle for Europe as its battlefield was in Europe. This war was a catastrophe to us, which was one of the most serious destructive war in European History and also one of the most tragic war in the world.The First World War broke out after Sarajevo Events happened in 1914. The war and the economy are two completely different concepts but the victory or defeat of the war largely depends on the economy. If a country has strong economic capacity, they can maintain the normal operation of the whole nation and also afford the large expenditure to make the war sustain besides they need to strive for victory of the war. The necessary supply of weapons, equipments, soldiers and consumables are needed according to the change of the war. Therefore, the country shall be stable and strong enough and the financial expenditure shall be ample.In the war, if a country has strong economic capacity, the spending of the war can be afforded and people's life can be protected. On the other hand, the inflation in the war is a difficulty which can not be avoided. To solve this difficulty, the country shall have strong economic capacity in the war. In the First World War, British was in a dilemma at the beginning of the war. Before the war, the income and outcome of British was balanced. Sometimes, there was surplus. When the war broke out, the revenue of British completely could not afford the war expenditure. In such a status, it was important for British to relax the pressure and face the difficulties of war expenditure by measures. British began to gather people's money and increase the taxes, therefore, people had no enough money to afford the luxury goods. They could only maintain the basic life expenditure. In the First World War, British solved the financial expenditure by domestic loans. Some of its policies were useful which we can learn from. |
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