Economic Effects of WW1
History: KS3, topic 17.3.2
Economic Effects of the First World War
Russia was not the only country that struggled with the effects of 'total war' on its economy and society.
Economic effects
- The government printed too much money, which caused the Russian currency (ruble) to fall in value.
- This worsened the cost-of-living crisis.
- Taxes were increased on the poor to fund government spending on the war.
- Government spending increased by a multiple of eight between 1913 and 1916.
Inflation
- Inflation (rising prices and fall in value of currency) meant that workers’ wages could no longer afford everyday items.
- During the war years, wages increased by 200%, but food and fuel increased 400% in price.
- This cut living standards by 50%.
Test yourself on Economic Effects of WW1
What was the name of the Russian currency?
Complete the economic effects of war