Economically: - "Before World War One, Great Britain was the world´s economic superpower" - Although Great Britain experienced growth and became a vast empire, it was not ready for the economic impact the war would have - Britain faced a market crash and an enormous financial crisis in the beginning of the Great War in 1914 - The British government had to fix the market and prepare itself for the high economic demands war would have - The government used 3 economic tactics to raise money: Taxes, Borrowing and Printing Money - During 1913, income tax was paid by 2% of the population while by 1918, 8% were paying income tax - The government often borrowed money from the public using campaigns which inspired the country to invest in war - The Bank of England was able to print more money although this was a risk to induce inflation - Although Great Britain was victorious, they suffered from the effects for many years - Foreign trade, which was crucial to the Empire, was damaged by the war - WW1 was the main reason for Britain's decline as the strongest economic power
Politically: - Newfoundland Government and other political parties began to support the government throughout the war - The Association did not work effectively and Prime Minister Morris decided to create a National Government during 1917 - Morris gave up his position and moved to England - Although the National Government stayed in power, some of the members formed an opposition party - Period of instability followed right after (financial difficulties)
Socially: - Around 12000 British men died in the war - Countless children had to grow up fatherless and therefore under poor circumstances as their fathers - providers of most families - had died - The few who came back safe returned to their old jobs while the ones with disabilities could not support their families anymore - People often suffered from the psychological effects of the war - The government created the Civil Re-Establishment Committee - June 1918 - Goals after the war: provide health care for injured men and veterans, provide vocational training and assist with job placement - The program Re-Establishment School offered education to soldiers - Committee managed to arrange jobs for 1000 ex-servicemen